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.For this economy to produce Y₁ and sustain it without inflation

A) the price of oil must increase.
B) the government must increase spending.
C) the government must decrease spending.
D) potential output must increase.