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    Macroeconomics Study Set 40
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    Exam 10: Aggregate Supply and Aggregate Demand
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    -In the Above Figure, the Economy Is Initially at Point
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-In the Above Figure, the Economy Is Initially at Point

Question 257

Question 257

Multiple Choice

  -In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is A)  a movement to point A. B)  a shift to AD<sub>2</sub>. C)  a movement to point C. D)  a shift to AD<sub>1</sub>.
-In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is


A) a movement to point A.
B) a shift to AD2.
C) a movement to point C.
D) a shift to AD1.

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