Refer to the Information Provided in Figure 12

Multiple Choice

Refer to the information provided in Figure 12.8 below to answer the questions that follow.
Figure 12.8
-Refer to Figure 12.8.Suppose the economy is currently at Point A producing potential output Y₀.If the government increases spending,the economy moves to Point ________ in the short-run and to Point ________ in the long-run.

A) D; E
B) B; C
C) C; B
D) B; D