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Refer to the Graphs Above

Question 134

Multiple Choice

Refer to the graphs above. Assume that the economy is initially at equilibrium where AD<sub>2</sub> and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to: A) Move from point C to point B B) Move from point C to point A C) Move from point C to point D D) Remain at point C Refer to the graphs above. Assume that the economy is initially at equilibrium where AD2 and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to:


A) Move from point C to point B
B) Move from point C to point A
C) Move from point C to point D
D) Remain at point C

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