In Referring to the diagram below, which of the following is a true statement? Prices SRAS AD1 AD2 Output 01 02 O The increase in supply (Q1 to Q2) may come about because of increased money supply. The increase in output (Q1 to Q2) may come about because of lower levels of taxation. The increase in supply (Q1 to Q2) may result from decreased government spending. The increase in output (Q1 to Q2) may result from increased levels of taxation.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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In Referring to the diagram below, which of the following is a true statement?
Prices
SRAS
AD1
AD2
Output
01 02
The increase in supply (Q1 to Q2) may come about because of increased money supply.
O The increase in output (Q1 to Q2) may come about because of lower levels of taxation.
O The increase in supply (Q1 to Q2) may result from decreased government spending.
The increase in output (Q1 to Q2) may result from increased levels of taxation.
Transcribed Image Text:In Referring to the diagram below, which of the following is a true statement? Prices SRAS AD1 AD2 Output 01 02 The increase in supply (Q1 to Q2) may come about because of increased money supply. O The increase in output (Q1 to Q2) may come about because of lower levels of taxation. O The increase in supply (Q1 to Q2) may result from decreased government spending. The increase in output (Q1 to Q2) may result from increased levels of taxation.
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