Figure 9.2

-Refer to Figure 9.2. A movement from point b to point c could be caused by a simultaneous ________ and ________.
A) increase in the money supply; increase in the price of oil
B) decrease in taxes; decrease in the price of oil
C) increase in taxes; decrease in government spending
D) increase in the price of oil; massive crop failure

Question

Figure 9.2
 
-Refer to Figure 9.2. A movement from point b to point c could be caused by a simultaneous ________ and ________.
A) increase in the money supply; increase in the price of oil 
B) decrease in taxes; decrease in the price of oil 
C) increase in taxes; decrease in government spending 
D) increase in the price of oil; massive crop failure

Quizplus · Accepted Answer

A movement from point b to point c in a typical economic model, such as the Aggregate Demand and Supply model, suggests an increase in the price level and a decrease in output. This could be caused by a simultaneous increase in the money supply, which boosts demand, and an increase in the price of oil, which raises production costs and reduces supply.

Figure 9.2 -Refer to Figure 9.2. a Movement from Point B to from Point