Refer to the information provided in Figure 15.1 below to answer the questions that follow. Figure 15.1
-Refer to Figure 15.1. If the economy is currently at Point C, pessimism about future growth in aggregate output moves the economy to Point
A) E.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 15.1 below to answer the questions that follow.  Figure 15.1
-Refer to Figure 15.1. If the economy is currently at Point C, pessimism about future growth in aggregate output moves the economy to Point
A) E. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

Pessimism about future growth in aggregate output typically reduces aggregate demand, shifting the economy from Point C to Point E, which represents lower output and price levels.

Refer to the Information Provided in Figure 15