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Use Figure: Macroeconomic Equilibrium

Question 94

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Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which one of the following statements is FALSE about the shift in equilibrium points?

Figure: Macroeconomic Equilibrium
Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which one of the following statements is FALSE about the shift in equilibrium points? ​ Figure: Macroeconomic Equilibrium   A)  An increase in the money supply will shift the equilibrium from point A to point B. B)  An increase in business taxes will shift the equilibrium from point A to point D. C)  An increase in the nominal wage will shift the equilibrium from point D to point A. D)  An increase in the federal income tax will shift the equilibrium from point D to point C.


A) An increase in the money supply will shift the equilibrium from point A to point B.
B) An increase in business taxes will shift the equilibrium from point A to point D.
C) An increase in the nominal wage will shift the equilibrium from point D to point A.
D) An increase in the federal income tax will shift the equilibrium from point D to point C.

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