Multiple Choice
The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2
-Refer to Figure 8.2. A movement from equilibrium point A to equilibrium point B would be the result of a(n) :
A) increase in consumer confidence and a decrease in productivity.
B) technological advances and domestic price decreases.
C) decrease in productivity and a decrease in government spending.
D) increase in production costs and greater consumer confidence.
E) decrease in domestic prices and decrease in direct taxes.
Correct Answer:

Verified
Correct Answer:
Verified
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