11.3 the Final Equilibrium

question 21

Multiple Choice

11.3 The Final Equilibrium
Refer to the information provided in Figure 11.6 below to answer the questions that follow. Figure 11.6
-Refer to Figure 11.6. Suppose the equilibrium output is initially $600 billion. An oil embargo would probably

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

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