Refer to the information provided in Figure 11.4 below to answer the questions that follow. Figure 11.4
-Refer to Figure 11.4. During the 2008-2009 recession, many firms in the United States reduced investment in new capital. If the economy was originally at Point A, this would have caused a movement to Point
A) E.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 11.4 below to answer the questions that follow.  Figure 11.4
-Refer to Figure 11.4. During the 2008-2009 recession, many firms in the United States reduced investment in new capital. If the economy was originally at Point A, this would have caused a movement to Point
A) E. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The correct answer is A because a decrease in investment will shift the aggregate demand curve to the left, causing a movement from Point A to Point E.

Refer to the Information Provided in Figure 11