Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal.
B) Both the labor force and the population increased.
C) Winter storms cause factories in the north to be shut down for several weeks.
D) Government spending increased causing aggregate demand to increase.
D
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Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero. B) Jackson's sunk cost was $100. C) Jackson's sunk cost was $200, and so was Wallace's. D) Wallace's sunk cost was $100. E) None of the above.
A decrease in the price level in the United States will have what effect on the aggregate expenditure line?
A) Aggregate expenditure will shift downward. B) Aggregate expenditure will shift upward. C) Aggregate expenditure will become steeper. D) Aggregate expenditure will not be affected by a decrease in the price level in the United States.