Exhibit 8-3

-Refer to Exhibit 8-3. A movement from point B to point A 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 foreign real national income.
D) a decrease in foreign real national income.

Question

Exhibit 8-3
 
-Refer to Exhibit 8-3. A movement from point B to point A 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 foreign real national income. 
D) a decrease in foreign real national income.

Quizplus · Accepted Answer

Moving from point B to point A on AD represents an increase in the price level. This is because at higher price levels, the quantity demanded of goods and services decreases, leading to a decrease in aggregate demand.

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