Figure 9.2

-Refer to Figure 9.2. A movement from point d to point a could be caused by a simultaneous ________ and ________.
A) decrease in the money supply; increase in the price of oil
B) increase in the money supply; massive crop failure
C) decrease in taxes; decrease in the money supply
D) decrease in government spending; decrease in the price of oil

Question

Figure 9.2
 
-Refer to Figure 9.2. A movement from point d to point a could be caused by a simultaneous ________ and ________.
A) decrease in the money supply; increase in the price of oil 
B) increase in the money supply; massive crop failure 
C) decrease in taxes; decrease in the money supply 
D) decrease in government spending; decrease in the price of oil

Quizplus · Accepted Answer

A movement from point d to point a on an aggregate demand and supply graph typically represents a decrease in aggregate demand and a decrease in short-run aggregate supply. A decrease in the money supply would reduce aggregate demand, and an increase in the price of oil would reduce short-run aggregate supply, making choice A correct.

Figure 9.2 -Refer to Figure 9.2. a Movement from Point D to from Point