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-Using the Above Graph Assume That the Economy Is in Equilibrium

Question 22

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-Using the above graph assume that the economy is in equilibrium at an output level of $600 billion and a price level of 110. What would happen to the aggregate output level and the price level if wages fell and their was an increase in government spending?
-Using the above graph assume that the economy is in equilibrium at an output level of $600 billion and a price level of 110. What would happen to the aggregate output level and the price level if wages fell and their was an increase in government spending?

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Aggregate output would rise for certain....

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