Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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