Use the following diagram to answer this question

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
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Use the following diagram to answer this question
Price level or GDP deflator
Ro
41-
SRAS₂
-----
AD₂
SRAS,
SRAS,
-11110
AD₁
AD₁
Output or
RGDP
Suppose the short-run macroeconomic equilibrium is at point A. In the short run, an open market sale would move the equilibrium to:
O A. point E
OB. point C
O C. point H
O D. point B
10
Transcribed Image Text:Use the following diagram to answer this question Price level or GDP deflator Ro 41- SRAS₂ ----- AD₂ SRAS, SRAS, -11110 AD₁ AD₁ Output or RGDP Suppose the short-run macroeconomic equilibrium is at point A. In the short run, an open market sale would move the equilibrium to: O A. point E OB. point C O C. point H O D. point B 10
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