Multiple Choice
Refer to Figure 13.1 for the following questions.
Figure 13.1
-In Figure 13.1, if fiscal policy successfully moves the economy from point B to equilibrium at potential GDP, this will:
A) increase the price level from P₂ to P₃.
B) increase the price level from P₁ to P₂.
C) decrease the price level from P₃ to P₂.
D) decrease the price level from P₂ to P₁.
Correct Answer:

Verified
Correct Answer:
Verified
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