Referring to the diagram above, which of the following is a true statement?
A. The increase in supply (Q1 to Q2) may come about because of increased money supply.
B. The increase in output (Q1 to Q2) may come about because of lower levels of taxation.
C. The increase in supply (Q1 to Q2) may result from decreased government spending.
D. The increase in output (Q1 to Q2) may result from increased levels of taxation.
Answer:B
Referring to the diagram above, which of the following is a true statement?
A. The increase in supply (Q1 to Q2) may come about because of increased money supply. B. The increase in output (Q1 to Q2) may come about because of lower levels of taxation. C. The increase in supply (Q1 to Q2) may result from decreased government spending. D. The increase in output (Q1 to Q2) may result from increased levels of taxation.
Explanation: Type: Multiple Choice