QUESTION 6 In the diagram below, what would happen if the government were to increase spending on goods and services? C₂ WI W O a. The line marked W would shift downwards and national income would move towards its equilibrium level O b. The line marked J would shift upwards and national income would move towards its equilibrium level O c. The line marked W would shift upwards and national income would move towards its equilibrium level O d. The line marked J would shift downwards and national income would move towards its equilibrium level

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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QUESTION 6
In the diagram below, what would happen if the government were to increase spending on goods and services?
CWJ
W
O a. The line marked W would shift downwards and national income would move towards its equilibrium level
O b. The line marked J would shift upwards and national income would move towards its equilibrium level
O c. The line marked W would shift upwards and national income would move towards its equilibrium level
O d. The line marked J would shift downwards and national income would move towards its equilibrium level
Transcribed Image Text:QUESTION 6 In the diagram below, what would happen if the government were to increase spending on goods and services? CWJ W O a. The line marked W would shift downwards and national income would move towards its equilibrium level O b. The line marked J would shift upwards and national income would move towards its equilibrium level O c. The line marked W would shift upwards and national income would move towards its equilibrium level O d. The line marked J would shift downwards and national income would move towards its equilibrium level
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