Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, Point E necessarily represents

Economic activity that is above potential output ________

A) signals that potential output is about to increase B) is not possible C) results from an economic shock to which the economy has yet to adjust fully D) occurs near the trough, rather than the peak, of a business cycle E) none of the above

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?