Exhibit 16-3 -According to Those Who Favor an Active Approach to Policy,where

Multiple Choice

Exhibit 16-3
-According to those who favor an active approach to policy,where will the economy in Exhibit 16-3 end up once the expansionary gap is eliminated?

A) point A
B) point B
C) point C
D) either point B or C
E) cannot tell from the information given