-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 b
C)real wealth; point d
D)real wealth from a fall in the price level; point d

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 b 
C)real wealth; point d 
D)real wealth from a fall in the price level; point d

Quizplus · Accepted Answer

An increase in expected future income will increase consumption, shifting the aggregate demand curve to the right, moving the economy from point a to point b.

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