Figure 12.4

-Refer to Figure 12.4. A movement from equilibrium point B to equilibrium point A would be the result of
A) an increase in consumer confidence and decrease in productivity.
B) technological advances and domestic price decreases.
C) an increase in productivity and an increase in government spending.
D) an increase in production costs and greater consumer confidence.
E) a decrease in domestic prices and greater business confidence.

Question

Figure 12.4
 
-Refer to Figure 12.4. A movement from equilibrium point B to equilibrium point A would be the result of
A) an increase in consumer confidence and decrease in productivity. 
B) technological advances and domestic price decreases. 
C) an increase in productivity and an increase in government spending. 
D) an increase in production costs and greater consumer confidence. 
E) a decrease in domestic prices and greater business confidence.

Quizplus · Accepted Answer

An increase in productivity and an increase in government spending would shift the aggregate supply curve to the right and the aggregate demand curve to the right, respectively. This would result in a movement from equilibrium point B to equilibrium point A.

Figure 12.4 -Refer to Figure 12.4. a Movement from Equilibrium Point B