11.3 the Final Equilibrium

Multiple Choice

11.3 The Final Equilibrium
Refer to the information provided in Figure 11.6 below to answer the questions that follow. Figure 11.6
-Refer to Figure 11.6. Suppose the equilibrium output is initially $600 billion. A decrease in the Z factors ________ equilibrium output and ________ the price level.

A) decreases; leaves unchanged
B) leaves unchanged; increases
C) increases; increases
D) increases; decreases