Figure 23-2
-Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) The price level in the United States rises relative to the price level in other countries.
B) Congress passes investment tax incentives.
C) The interest rate rises.
D) Household wealth declines.

Question

Figure 23-2 
-Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) The price level in the United States rises relative to the price level in other countries. 
B) Congress passes investment tax incentives. 
C) The interest rate rises. 
D) Household wealth declines.

Quizplus · Accepted Answer

Investment tax incentives can stimulate economic activity by encouraging businesses to invest more, which can shift the economy from point K to point N, typically representing an increase in aggregate demand or economic output.

Figure 23-2 -Refer to Figure 23-2. If the U.S. Economy Is Currently