Use Figure: Macroeconomic Equilibrium. This figure shows four different macroeconomic equilibria for an economy. Which of the following can shift the macroeconomic equilibrium from point B to point A?

Figure: Macroeconomic Equilibrium

A) Discretionary government spending increases.
B) Federal income taxes increase.
C) Business taxes increase.
D) The money supply increases.

Question

Use Figure: Macroeconomic Equilibrium. This figure shows four different macroeconomic equilibria for an economy. Which of the following can shift the macroeconomic equilibrium from point B to point A?
​
Figure: Macroeconomic Equilibrium

A) Discretionary government spending increases. 
B) Federal income taxes increase. 
C) Business taxes increase. 
D) The money supply increases.

Quizplus · Accepted Answer

The Answer of Use Figure: Macroeconomic Equilibrium. This figure shows four different macroeconomic equilibria for an economy. Which of the following can shift the macroeconomic equilibrium from point B to point A?
​
Figure: Macroeconomic Equilibrium

A) Discretionary government spending increases. 
B) Federal income taxes increase. 
C) Business taxes increase. 
D) The money supply increases.