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, a decrease in aggregate demand 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, a decrease in aggregate demand moves the economy to Point
A) E. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

A decrease in aggregate demand typically moves the economy from a point of equilibrium to a lower output and price level, which is represented by a movement down along the aggregate supply curve to a new equilibrium point, such as Point C.

Refer to the Information Provided in Figure 26