-In the above figure, if the economy initially is at point A and government expenditure increases, in the short run the economy will move to point
A) C.
B) B.
C) A, that is, the equilibrium will NOT change.
D) None of the above answers is correct.

Question

-In the above figure, if the economy initially is at point A and government expenditure increases, in the short run the economy will move to point
A) C. 
B) B. 
C) A, that is, the equilibrium will NOT change. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if the economy initially is at point A and government expenditure increases, in the short run the economy will move to point
A) C. 
B) B. 
C) A, that is, the equilibrium will NOT change. 
D) None of the above answers is correct.

-In the Above Figure, If the Economy Initially Is at Point