FIGURE 29-3 Refer to Figure 29-3

Multiple Choice

FIGURE 29-3 Refer to Figure 29-3.The movement of the economy from E₀ to E₁ was likely caused by

A) a positive demand shock due to an increase in investment.
B) a positive supply shock caused by improved productivity.
C) a negative demand shock caused by fall in consumption.
D) a negative supply shock caused by higher input prices.
E) an increase in the price level.