The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2

-Refer to Figure 8.2. A movement from equilibrium point A to equilibrium point B would be the result of a(n):
A) increase in consumer confidence and a decrease in productivity.
B) technological advances and domestic price decreases.
C) decrease in productivity and a decrease in government spending.
D) increase in production costs and greater consumer confidence.
E) decrease in domestic prices and decrease in direct taxes.

Question

The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2
 
-Refer to Figure 8.2. A movement from equilibrium point A to equilibrium point B would be the result of a(n):
A) increase in consumer confidence and a decrease in productivity. 
B) technological advances and domestic price decreases. 
C) decrease in productivity and a decrease in government spending. 
D) increase in production costs and greater consumer confidence. 
E) decrease in domestic prices and decrease in direct taxes.

Quizplus · Accepted Answer

The Answer of The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2
 
-Refer to Figure 8.2. A movement from equilibrium point A to equilibrium point B would be the result of a(n):
A) increase in consumer confidence and a decrease in productivity. 
B) technological advances and domestic price decreases. 
C) decrease in productivity and a decrease in government spending. 
D) increase in production costs and greater consumer confidence. 
E) decrease in domestic prices and decrease in direct taxes.

The Figure Given Below Represents the Long-Run Equilibrium in the Aggregate