curve.

-The figure above illustrates aggregate demand and aggregate supply in Sparta. Spartaʹs price level will rise above 100 if ___________.
A) government expenditure decreases
B) the quantity of money increases
C) taxes increase
D) the quantity of capital increases

Question

curve.
 
-The figure above illustrates aggregate demand and aggregate supply in Sparta. Spartaʹs price level will rise above 100 if ___________.
A) government expenditure decreases 
B) the quantity of money increases 
C) taxes increase 
D) the quantity of capital increases

Quizplus · Accepted Answer

An increase in the quantity of money, all else equal, will cause a shift in aggregate demand to the right, resulting in a higher price level in Sparta.

Curve. -The Figure Above Illustrates Aggregate Demand and Aggregate Supply in Aggregate