-In the above figure, the shift from point C to point B might be the result of
A) a decrease in the price level.
B) a decrease in government expenditures.
C) an increase in the quantity of money.
D) an increase in the price level.

Question

-In the above figure, the shift from point C to point B might be the result of
A) a decrease in the price level. 
B) a decrease in government expenditures. 
C) an increase in the quantity of money. 
D) an increase in the price level.

Quizplus · Accepted Answer

A shift from point C to point B suggests a decrease in aggregate demand, which can be caused by a decrease in government expenditures.

-In the Above Figure, the Shift from Point C to Point