-In the above figure, if the economy is at point a, an increase in will move the economy to
)
A) expected future income; point b
B) expected future income; point d
C) real wealth from a fall in the price level; point d
D) real wealth; point d

Question

-In the above figure, if the economy is at point a, an increase in will move the economy to
)
A) expected future income; point b 
B) expected future income; point d 
C) real wealth from a fall in the price level; point d 
D) real wealth; point d

Quizplus · Accepted Answer

An increase in expected future income will increase aggregate demand, shifting the AD curve to the right and moving the economy to point b.

-In the Above Figure, If the Economy Is at Point