-In the above figure, the movement from point B to point A might be the result of
A) an increase in government expenditures because of a war.
B) an increase in government expenditures because of increases in education expenditures.
C) an increase in the demand for manufacturing goods because of new technology.
D) a fall in the price level.

Question

-In the above figure, the movement from point B to point A might be the result of
A) an increase in government expenditures because of a war. 
B) an increase in government expenditures because of increases in education expenditures. 
C) an increase in the demand for manufacturing goods because of new technology. 
D) a fall in the price level.

Quizplus · Accepted Answer

A fall in the price level can lead to a movement from point B to point A, as it typically increases the real value of money, leading to higher consumption and investment, thus shifting the aggregate demand curve to the right.

-In the Above Figure, the Movement from Point B to Point