$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Amount of Real Output } \
\text { Demanded }
\end{array} & \text { Price Level (Index Value) } & \begin{array} { c }
\text { Amount of Real Output } \
\text { Supplied }
\end{array} \
\hline \$ 200 & 300 & \$ 500 \
\hline 300 & 250 & 450 \
\hline 400 & 200 & 400 \
\hline 500 & 150 & 300 \
\hline 600 & 100 & 200 \
\hline
\end{array}$$ The table gives aggregate demand and supply schedules for a hypothetical economy. If the amount of real output demanded at each price level falls by $200, this might have been caused by
A) an increase in net exports.
B) a worsening of business expectations.
C) an increase in consumer wealth.
D) a decrease in the personal income tax.

Question

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Amount of Real Output } \
\text { Demanded }
\end{array} & \text { Price Level (Index Value) } & \begin{array} { c } 
\text { Amount of Real Output } \
\text { Supplied }
\end{array} \
\hline \$ 200 & 300 & \$ 500 \
\hline 300 & 250 & 450 \
\hline 400 & 200 & 400 \
\hline 500 & 150 & 300 \
\hline 600 & 100 & 200 \
\hline
\end{array}$$ The table gives aggregate demand and supply schedules for a hypothetical economy. If the amount of real output demanded at each price level falls by $200, this might have been caused by
A) an increase in net exports.
B) a worsening of business expectations.
C) an increase in consumer wealth.
D) a decrease in the personal income tax.

Quizplus · Accepted Answer

A decrease in the amount of real output demanded, such as by $200 at each price level, suggests a negative shift in aggregate demand. This could be caused by worsening business expectations, which might lead to reduced investment spending, thereby decreasing aggregate demand. Choices A, C, and D typically increase aggregate demand, not decrease it.

The Table Gives Aggregate Demand and Supply Schedules for a \hline

The Table Gives Aggregate Demand and Supply Schedules for a
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