Figure 16.2

-Refer to Figure 16.2. Movement from point A to point B could be the result of a(n)
A) increase in the money supply.
B) decrease in government spending.
C) decrease in the money supply.
D) increase in tax rates.
E) economic recession.

Question

Figure 16.2
 
-Refer to Figure 16.2. Movement from point A to point B could be the result of a(n)
A) increase in the money supply. 
B) decrease in government spending. 
C) decrease in the money supply. 
D) increase in tax rates. 
E) economic recession.

Quizplus · Accepted Answer

An increase in the money supply typically shifts the aggregate demand curve to the right, leading to a movement from point A to point B on a graph showing an increase in output and price level.

Figure 16.2 -Refer to Figure 16.2. Movement from Point a to Point