Refer to Figure 18.4 for the Following Questions

question 132

Multiple Choice

Refer to Figure 18.4 for the following questions.
Figure 18.4
-In Figure 18.4,if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP,which of the following will occur?

• A) The price level will rise
• B) Deflation will occur
• C) Unemployment will fall
• D) Unemployment will rise

---

Definitions:

Price-Inelastic

Referring to a market situation where demand or supply is not sensitive to price changes.

Wheat Farmers

Individuals or entities engaged in the cultivation of wheat, a staple grain worldwide, involving planting, growing, and harvesting activities.

Total Revenues

The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are subtracted.

Close Substitutes

Products or services that serve similar purposes and can easily replace each other in the eyes of the consumer, affecting their choices and preferences.