FIGURE 29-3 Refer to Figure 29-3

Multiple Choice

FIGURE 29-3 Refer to Figure 29-3.The movement of the economy from E₁ to E₂ was likely caused by

A) a negative demand shock associated with a reduction in net exports.
B) a positive supply shock caused by improved productivity.
C) a monetary expansion by the Bank of Canada.
D) an increase in the price level.
E) a negative demand shock combined with a positive supply shock.