Refer to the Graph $P _ { 1 }$ And Output Level

question 298

Multiple Choice

Refer to the graph. Assume that the economy is in a recession with a price level of $P _ { 1 }$ and output level
$Q _ { 1 }$ . The government then adopts an appropriate discretionary ?scal policy. What will be the most likely
New equilibrium price level and output?

• A) \(P _ { 2 } \text { and } Q _ { 4 }\)
• B) \(P _ { 1 } \text { and } Q _ { 1 }\)
• C) \(P _ { 2 } \text { and } Q _ { 2 }\)
• D) \(P _ { 1 } \text { and } Q _ { 3 }\)

---

Definitions:

Unsolicited Proposal

A proposal submitted by an individual or organization to another entity without being requested or invited to do so, often aiming to offer solutions or services.

External Source

An external source refers to information or data that comes from outside an organization or study, often used to provide additional evidence or benchmarks.

Indirect Approach

A communication method where the main point or request is not presented directly at the beginning but is instead gradually led up to, often used to soften the delivery of less favorable news or requests.

Explanation Section

A segment of a document or presentation dedicated to clarifying, detailing, or justifying a specific point, idea, or procedure.