Refer to the information provided in Figure 26.4 below to answer the question(s) that follow. Figure 26.4
-Refer to Figure 26.4. Suppose the economy is at Point A, an increase in the price level moves the economy to Point
A) E.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.  Figure 26.4
-Refer to Figure 26.4. Suppose the economy is at Point A, an increase in the price level moves the economy to Point
A) E. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

An increase in the price level will shift the aggregate demand curve to the left. This means that the economy will move from point A to a point to the left of it. The only option that is to the left of point A is point B.

Refer to the Information Provided in Figure 26