Multiple Choice
Refer to the information provided in Figure 12.6 below to answer the questions that follow.
Figure 12.6
-Refer to Figure 12.6.Suppose the equilibrium output is initially $600 billion.A decrease in wages and an increase in government spending will,for sure,increase
A) both the equilibrium output and the price level.
B) the price level.
C) equilibrium output.
D) equilibrium output and decrease the price level.
Correct Answer:

Verified
Correct Answer:
Verified
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