Refer to the information provided in Figure 30.1 below to answer the question(s) that follow. Figure 30.1
-Refer to Figure 30.1. Which of the following could cause a movement from Point B to Point A?
A) a decrease in the interest rate
B) positive growth in aggregate output
C) negative growth in aggregate output
D) an increase in the interest rate

Question

Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.  Figure 30.1
-Refer to Figure 30.1. Which of the following could cause a movement from Point B to Point A?
A) a decrease in the interest rate 
B) positive growth in aggregate output 
C) negative growth in aggregate output 
D) an increase in the interest rate

Quizplus · Accepted Answer

A decrease in the interest rate would increase consumption and investment spending, which would shift the aggregate demand curve to the right and cause a movement from Point B to Point A. Positive or negative growth in aggregate output would cause a movement along the aggregate demand curve, not a shift in the curve. An increase in the interest rate would have the opposite effect on consumption and investment spending, and therefore would shift the aggregate demand curve to the left.

Refer to the Information Provided in Figure 30