Exhibit 8-3

-Refer to Exhibit 8-3. A movement from point A to point B on AD? would have been the result of
A) a decrease in the price level.
B) an increase in the price level.
C) an increase in income taxes.
D) a decrease in income taxes.

Question

Exhibit 8-3
 
-Refer to Exhibit 8-3. A movement from point A to point B on AD? would have been the result of
A) a decrease in the price level. 
B) an increase in the price level. 
C) an increase in income taxes. 
D) a decrease in income taxes.

Quizplus · Accepted Answer

A decrease in the price level would shift the aggregate demand curve to the right, causing a movement from point A to point B on AD.

Exhibit 8-3 -Refer to Exhibit 8-3. a Movement from Point a to from Point