Business expectations about future economic conditions

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According to the figure, U.S. GDP at Situation (3) is $8 trillion with a price level of 113. Suppose that the U.S. economy moves from Situation (3) to Situation (2). Which of the answer choices best explains the reason for this movement? A. A decrease in consumer and business expectations about future economic conditions. B. An increase in the money supply by the Federal Reserve. C. A decrease in business taxes. D. An increase in government regulations imposed on businesses.

Reference no: EM131099128

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