The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. The movement shown in this figure is most likely to be caused by:

A) a decrease in the real wage.
B) an increase in the economy's capital stock.
C) the actions of a labor union.
D) a decrease in consumer spending.
E) an increase in labor productivity.

Question

The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. The movement shown in this figure is most likely to be caused by:

A) a decrease in the real wage. 
B) an increase in the economy's capital stock. 
C) the actions of a labor union. 
D) a decrease in consumer spending. 
E) an increase in labor productivity.

Quizplus · Accepted Answer

The Answer of The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. The movement shown in this figure is most likely to be caused by:

A) a decrease in the real wage. 
B) an increase in the economy's capital stock. 
C) the actions of a labor union. 
D) a decrease in consumer spending. 
E) an increase in labor productivity.

The Figure Below Shows the Determination of the Equilibrium Price