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Use the Following Diagram to Answer the Following Questions

Question 9

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Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If households decrease spending, this would most likely: A)  shift aggregate demand from AD₁ to AD₂. B)  cause unemployment. C)  cause the equilibrium level of real GDP and the equilibrium price level to fall. D)  all of the above.
-Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If households decrease spending, this would most likely:


A) shift aggregate demand from AD₁ to AD₂.
B) cause unemployment.
C) cause the equilibrium level of real GDP and the equilibrium price level to fall.
D) all of the above.

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