In the above figure, a movement from point B to point A can be explained by
A) an increase in spending due to a war.
B) an increase in spending due to increases in education expenditures.
C) an increase in the demand for manufacturing goods due to new technology.
D) a drop in the price level.

Question

Quizplus · Accepted Answer

The movement from point B to point A indicates a decrease in aggregate demand, which could be caused by a drop in the price level. Options A, B, and C would all result in an increase in aggregate demand, moving the economy to a point to the right of point B.

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