Figure 15-2

-Refer to the Figure 15-2.Which of the following can happen in a closed economy?
A) Unemployment falls as the economy moves from a to b.
B) Fiscal policy is ineffective to move the economy from b to a.
C) If the economy is left alone, then as the economy moves from b to long-run equilibrium, the price level will increase.
D) An increase in money supply increases both output and prices.

Question

Figure 15-2
 
-Refer to the Figure 15-2.Which of the following can happen in a closed economy?
A) Unemployment falls as the economy moves from a to b. 
B) Fiscal policy is ineffective to move the economy from b to a. 
C) If the economy is left alone, then as the economy moves from b to long-run equilibrium, the price level will increase. 
D) An increase in money supply increases both output and prices.

Quizplus · Accepted Answer

The Answer of Figure 15-2
 
-Refer to the Figure 15-2.Which of the following can happen in a closed economy?
A) Unemployment falls as the economy moves from a to b. 
B) Fiscal policy is ineffective to move the economy from b to a. 
C) If the economy is left alone, then as the economy moves from b to long-run equilibrium, the price level will increase. 
D) An increase in money supply increases both output and prices.

Figure 15-2 -Refer to the Figure 15-2.Which of the Following Can Happen