Refer to the information provided in Figure 13.1 below to answer the questions that follow.
Figure 13.1
-Refer to Figure 13.1.Suppose the economy is at Point A,an decrease in government purchases can cause a movement to Point
A)E.
B)B.
C)C.
D)D.

Question

Refer to the information provided in Figure 13.1 below to answer the questions that follow.
  Figure 13.1
-Refer to Figure 13.1.Suppose the economy is at Point A,an decrease in government purchases can cause a movement to Point
A)E. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

A decrease in government purchases would likely lead to a decrease in aggregate demand, causing the economy to move to a point with lower output and possibly lower price levels, such as Point C.

Refer to the Information Provided in Figure 13