-In the above figure, a movement from point A to point B could be explained by
A) an increase in the price level.
B) an increase in the quantity of money in circulation.
C) a decrease in the price level.
D) a decrease in government spending.

Question

-In the above figure, a movement from point A to point B could be explained by
A) an increase in the price level. 
B) an increase in the quantity of money in circulation. 
C) a decrease in the price level. 
D) a decrease in government spending.

Quizplus · Accepted Answer

An increase in the price level would shift the aggregate demand curve to the left, causing a movement from point A to point B.

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