Refer to the information provided in Figure 12.4 below to answer the questions that follow.
Figure 12.4
-Refer to Figure 12.4.Which of the following causes the economy to move from Point A to Point E?
A)an oil embargo that increases the price of oil
B)technological progress
C)an influx of immigrants
D)an increase in the price level

Question

Refer to the information provided in Figure 12.4 below to answer the questions that follow.
  Figure 12.4
-Refer to Figure 12.4.Which of the following causes the economy to move from Point A to Point E?
A)an oil embargo that increases the price of oil 
B)technological progress 
C)an influx of immigrants 
D)an increase in the price level

Quizplus · Accepted Answer

An oil embargo that increases the price of oil will shift the aggregate supply (AS) curve to the left, causing a decrease in real GDP and an increase in the price level. This movement will cause the economy to move from Point A to Point E. Technological progress, an influx of immigrants, and an increase in the price level will not cause such a movement.

Refer to the Information Provided in Figure 12