Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which one of the following statements is FALSE about the shift in equilibrium points?

Figure: Macroeconomic Equilibrium

A) An increase in the money supply will shift the equilibrium from point A to point B.
B) An increase in business taxes will shift the equilibrium from point A to point D.
C) An increase in the nominal wage will shift the equilibrium from point D to point A.
D) An increase in the federal income tax will shift the equilibrium from point D to point C.

Question

Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which one of the following statements is FALSE about the shift in equilibrium points?
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Figure: Macroeconomic Equilibrium

A) An increase in the money supply will shift the equilibrium from point A to point B. 
B) An increase in business taxes will shift the equilibrium from point A to point D. 
C) An increase in the nominal wage will shift the equilibrium from point D to point A. 
D) An increase in the federal income tax will shift the equilibrium from point D to point C.

Quizplus · Accepted Answer

The Answer of Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which one of the following statements is FALSE about the shift in equilibrium points?
​
Figure: Macroeconomic Equilibrium

A) An increase in the money supply will shift the equilibrium from point A to point B. 
B) An increase in business taxes will shift the equilibrium from point A to point D. 
C) An increase in the nominal wage will shift the equilibrium from point D to point A. 
D) An increase in the federal income tax will shift the equilibrium from point D to point C.