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Exhibit 16A-3 Macro AD\AS Models in Panel (B)of Exhibit

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Exhibit 16A-3 Macro AD\AS Models Exhibit 16A-3 Macro AD\AS Models   In Panel (b) of Exhibit 16A-3, the economy is initially in short-run equilibrium at real GDP level Y<sub>1</sub> and price level P<sub>2</sub>. If the federal government or Fed decides to intervene, it would most likely: A) decrease taxes. B) increase the money supply. C) increase the level of government spending for goods and services. D) decrease the level of government spending for goods and services. In Panel (b) of Exhibit 16A-3, the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. If the federal government or Fed decides to intervene, it would most likely:


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