Figure 14.2
-Refer to Figure 14.2. A movement from point b to point d could be caused by a(n)
A) decrease in government spending.
B) increase in the price of oil.
C) decrease in taxes.
D) increase in short-run aggregate supply.

Question

Figure 14.2
-Refer to Figure 14.2. A movement from point b to point d could be caused by a(n)
A) decrease in government spending. 
B) increase in the price of oil. 
C) decrease in taxes. 
D) increase in short-run aggregate supply.

Quizplus · Accepted Answer

A decrease in taxes can increase disposable income, leading to higher consumer spending and shifting the aggregate demand curve to the right, moving from point b to point d.

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