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 an increase in government spending, the equilibrium interest rate ________ and the equilibrium output level ________.
◦ increases; increases
◦ increases; decreases
◦ decreases; increases
◦ decreases; decreases
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 an increase in the price level, the equilibrium interest rate ________ and the equilibrium output level ________.
◦ increases; increases
◦ increases; decreases
◦ decreases; increases
◦ decreases; decreases
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