Use the figure below to answer the following questions.
Figure 8.5.1
-Refer to Figure 8.5.1.Everything else remaining the same, which graph best shows the effect of a decrease in real GDP?
A)a
B)b
C)c
D)d
E)a and c

Question

Use the figure below to answer the following questions.
  Figure 8.5.1
-Refer to Figure 8.5.1.Everything else remaining the same, which graph best shows the effect of a decrease in real GDP?
A)a 
B)b 
C)c 
D)d 
E)a and c

Quizplus · Accepted Answer

A decrease in real GDP would shift the aggregate demand curve inward, as there would be a decrease in overall spending in the economy. This is best represented by graph B, which shows a shift to the left along the aggregate demand curve.

Use the Figure Below to Answer the Following Questions