Refer to the Following Figure When Answering the Following Questions

question 99

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 13.2: AD Curve
-Consider Figure 13.2. Each of the aggregate demand curves pictured represents a different economy. In which economy would fighting inflation have the biggest impact on real output?

• A) Economy 3
• B) Economy 1
• C) Economy 2
• D) Economy 4
• E) Not enough information is given.

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