If the Economy in the Graph Shown Is Currently at Point

question 27

Multiple Choice

If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:

• A) A
• B) It is likely to be unaffected and stay at point B
• C) C
• D) D

---

Definitions:

Justiciable Controversy

A dispute that is appropriate for court review because it involves a real and substantial conflict between parties with legitimate interests.

Hypothetical

A theoretical situation or proposition used for the purpose of discussion, analysis, or problem-solving.

Justiciable Controversy

A genuine and concrete dispute suitable for court adjudication because it affects the legal rights of the parties involved.

Hypothetical

Based on proposed or imagined events or scenarios not grounded in reality for the purpose of discussion or analysis.