Figure 14.2
-Refer to Figure 14.2. A movement from point a to point d could be caused by a simultaneous ________ and ________.
A) increase in government spending; decrease in the price of oil
B) increase in taxes; increase in the price of oil
C) decrease in taxes; massive crop failure
D) decrease in the money supply; decrease in government spending

Question

Figure 14.2
-Refer to Figure 14.2. A movement from point a to point d could be caused by a simultaneous ________ and ________.
A) increase in government spending; decrease in the price of oil 
B) increase in taxes; increase in the price of oil 
C) decrease in taxes; massive crop failure 
D) decrease in the money supply; decrease in government spending

Quizplus · Accepted Answer

A movement from point a to point d in a typical aggregate demand and supply graph would indicate an increase in both aggregate demand and aggregate supply. An increase in government spending would boost aggregate demand, while a decrease in the price of oil would lower production costs, thereby increasing aggregate supply.

Figure 14.2 -Refer to Figure 14.2. a Movement from Point a to a to Point