Exhibit 10.8 -Refer to Exhibit 10.8, Which Shows the Long-Run Equilibrium in the Long-Run

Multiple Choice

Exhibit 10.8

-Refer to Exhibit 10.8, which shows the long-run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this exhibit from Y₁ to Y₂ could have been caused by _____

A) a government policy aimed at increasing demand.
B) a change in weather conditions that led to worldwide crop failures.
C) an attempt by key resource producers to monopolize supply.
D) an increase in taxation or a decrease in government spending.
E) an increase in labor productivity.