Figure 9.2

-Refer to Figure 9.2. A movement from point a to point b could be caused by a(n)
A) increase in government spending.
B) decrease in the price of oil.
C) decrease in taxes.
D) decrease in short-run aggregate supply.

Question

Figure 9.2
 
-Refer to Figure 9.2. A movement from point a to point b could be caused by a(n)
A) increase in government spending. 
B) decrease in the price of oil. 
C) decrease in taxes. 
D) decrease in short-run aggregate supply.

Quizplus · Accepted Answer

A decrease in the price of oil would reduce production costs, leading to an increase in short-run aggregate supply, which could cause a movement from point a to point b.

Figure 9.2 -Refer to Figure 9.2. a Movement from Point a to from Point