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    Economics Study Set 8
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    Refer to the Graph Shown
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Refer to the Graph Shown

Question 14

Question 14

Multiple Choice

Refer to the graph shown. A movement from D to B is most likely to be caused by: Refer to the graph shown. A movement from D to B is most likely to be caused by:   A) an increase in expected inflation. B) a decrease in input prices. C) a decrease in import prices. D) a decrease in aggregate demand.


A) an increase in expected inflation.
B) a decrease in input prices.
C) a decrease in import prices.
D) a decrease in aggregate demand.

Correct Answer:

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