Question 1
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level increases.
◦ an increase in government spending
◦ a decrease in government spending
◦ an increase in the price level
◦ a decrease in the price level
Question 2
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level decreases.
◦ an increase in government spending
◦ a decrease in government spending
◦ an increase in the price level
◦ a decrease in the price level
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