The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.
Figure 8.3

-Consider Figure 8.3. Which of the following is most likely to have led to the movement from point B to point E?
A) Declining net exports
B) Increased investment spending.
C) A decline in the domestic price level.
D) An improvement in the quality of labor.
E) An increase in the real wage rates.

Question

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.
Figure 8.3
 
-Consider Figure 8.3. Which of the following is most likely to have led to the movement from point B to point E?
A) Declining net exports 
B) Increased investment spending. 
C) A decline in the domestic price level. 
D) An improvement in the quality of labor. 
E) An increase in the real wage rates.

Quizplus · Accepted Answer

The Answer of The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.
Figure 8.3
 
-Consider Figure 8.3. Which of the following is most likely to have led to the movement from point B to point E?
A) Declining net exports 
B) Increased investment spending. 
C) A decline in the domestic price level. 
D) An improvement in the quality of labor. 
E) An increase in the real wage rates.

The Figure Given Below Represents the Equilibrium Real GDP and Price