Use the figure below to answer the following question(s).
Figure 10-11

-In Figure 10-11,which of the following would most likely cause the movement from point E₁ to point E₂?
A)an increase in the expected inflation rate
B)a decrease in the expected inflation rate
C)a major technological advance
D)a temporary reduction in oil prices

Question

Use the figure below to answer the following question(s).
Figure 10-11
 
-In Figure 10-11,which of the following would most likely cause the movement from point E₁ to point E₂?
A)an increase in the expected inflation rate 
B)a decrease in the expected inflation rate 
C)a major technological advance 
D)a temporary reduction in oil prices

Quizplus · Accepted Answer

A major technological advance would likely increase productivity and economic output, causing a shift from point E₁ to point E₂.

Use the Figure Below to Answer the Following Question(s)