-In the above figure, if the economy is at point a, an increase in will move the economy to
)
A) expected future income; point d
B) expected future income; point c
C) real wealth from the fall in the price level; point c
D) real wealth from the fall in the price level; point b

Question

-In the above figure, if the economy is at point a, an increase in will move the economy to
)
A) expected future income; point d 
B) expected future income; point c 
C) real wealth from the fall in the price level; point c 
D) real wealth from the fall in the price level; point b

Quizplus · Accepted Answer

An increase in real wealth from the fall in the price level will shift the IS curve to the right, moving the economy from point a to point c.

-In the Above Figure, If the Economy Is at Point