11.3 the Final Equilibrium

question 42

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. A decrease in the Z factors ________ equilibrium output and ________ the price level.

• A) decreases; leaves unchanged
• B) leaves unchanged; increases
• C) increases; increases
• D) increases; decreases