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Refer to the Information Provided in Figure 12

question 90

Multiple Choice

Refer to the information provided in Figure 12.1 below to answer the questions that follow. Refer to the information provided in Figure 12.1 below to answer the questions that follow.   Figure 12.1 -Refer to Figure 12.1. Suppose the economy is at Point A. A(n)  ________ can cause a movement to Point B. A)  increase in government purchases B)  decrease in government purchases C)  decrease in aggregate demand D)  increase in aggregate demand Figure 12.1
-Refer to Figure 12.1. Suppose the economy is at Point A. A(n) ________ can cause a movement to Point B.


Definitions:

Unemployment

The condition in which people actively seeking work are unable to find employment.

Long Run

The long run is a period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Unemployment

Unemployment refers to the situation when individuals who are able and willing to work are not able to find employment.

Price Level

The mean of present prices for all goods and services produced within the economy.

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