The Following Question Are Based on the Following Diagram

question 54

Multiple Choice

The following question are based on the following diagram:

-Which of the following events would correct the condition shown?

• A) an increase in spending by the private sector
• B) a decrease in potential output because of a natural disaster
• C) an increase in wages and other input prices
• D) an increase in the money supply by the government
• E) an increase in government spending accompanied by a tax cut