Refer to the Information Provided in Figure 12

question 65

Multiple Choice

Refer to the information provided in Figure 12.6 below to answer the questions that follow.
Figure 12.6
-Refer to Figure 12.6.Suppose the equilibrium output is initially $600 billion.A decrease in wages and an increase in government spending will,for sure,increase

• A)both the equilibrium output and the price level.
• B)the price level.
• C)equilibrium output.
• D)equilibrium output and decrease the price level.

---

Definitions:

Short-Term Loan

A short-term loan is a type of financing that is obtained for a relatively brief period, typically less than a year, to address immediate financial needs.

Financially Responsible

Refers to the ability or action of managing one's resources effectively, ensuring bills and debts are paid on time, and preparing for future financial obligations.

Guarantee

A formal promise or assurance that certain conditions will be met, including the quality or durability of a product, or the repayment of a loan.

Interest Rate

The percentage at which interest is charged or paid on borrowed or invested funds over a specific period of time.