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Refer to the Information Provided in Figure 11

question 26

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Refer to the information provided in Figure 11.8 below to answer the questions that follow. Refer to the information provided in Figure 11.8 below to answer the questions that follow.   Figure 11.8 -Refer to Figure 11.8. Suppose the economy is currently at Point A producing potential output Y<sub>0</sub>. If the government increases spending, the economy moves to Point ________ in the short-run and to Point ________ in the long-run. A)  D; E B)  B; C C)  C; B D)  B; D Figure 11.8
-Refer to Figure 11.8. Suppose the economy is currently at Point A producing potential output Y0. If the government increases spending, the economy moves to Point ________ in the short-run and to Point ________ in the long-run.


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