Figure 13.2 -Refer to Figure 13.2.Assume the Economy Is Initially in Equilibrium

Multiple Choice

Figure 13.2

-Refer to Figure 13.2.Assume the economy is initially in equilibrium with real GDP equal to potential GDP.Other things equal,the economy entering a recession would best be represented as a movement from ________ if there are no automatic stabilizers,and from ________ if there are automatic stabilizers.

A) point A to point B; point A to point C
B) point A to point C; point A to point B
C) point A to point B; point A to point C to point A
D) point A to point C; point A to point B to point A