The figure given below depicts long-run equilibrium in the aggregate demand-aggregate supply model.The movement from Y1 to Y2in this figure could have been caused by a:

A)decrease in the size of the labor force.
B)decrease in the price level.
C)positive level of net investment.
D)increase in autonomous consumption.
E)decrease in autonomous consumption.

Question

The figure given below depicts long-run equilibrium in the aggregate demand-aggregate supply model.The movement from Y1 to Y2in this figure could have been caused by a:

A)decrease in the size of the labor force. 
B)decrease in the price level. 
C)positive level of net investment. 
D)increase in autonomous consumption. 
E)decrease in autonomous consumption.

Quizplus · Accepted Answer

The Answer of The figure given below depicts long-run equilibrium in the aggregate demand-aggregate supply model.The movement from Y1 to Y2in this figure could have been caused by a:

A)decrease in the size of the labor force. 
B)decrease in the price level. 
C)positive level of net investment. 
D)increase in autonomous consumption. 
E)decrease in autonomous consumption.

The Figure Given Below Depicts Long-Run Equilibrium in the Aggregate