-In Panel (B)of Exhibit 20A-1,the Economy Is Initially in Short-Run

Multiple Choice

-In Panel (b) of Exhibit 20A-1,the economy is initially in short-run equilibrium at real GDP level Y₁ and price level P₂.If the federal government decides to intervene,it would most likely:

A) increase taxes.
B) decrease the money supply.
C) increase the level of government spending for goods and services.
D) decrease the level of government spending for goods and services.