-In the above figure, the curve labeled A shifts rightward if
A) expected future profits decrease.
B) the quantity of money decreases.
C) the substitution effect occurs.
D) taxes decrease.

Question

-In the above figure, the curve labeled A shifts rightward if
A) expected future profits decrease. 
B) the quantity of money decreases. 
C) the substitution effect occurs. 
D) taxes decrease.

Quizplus · Accepted Answer

The curve labeled A likely represents an aggregate demand or a similar economic concept where a rightward shift indicates an increase in demand or economic activity. A decrease in taxes typically increases disposable income for consumers and businesses, leading to increased spending or investment, which can cause such a curve to shift rightward. Expected future profits decreasing, the quantity of money decreasing, or the substitution effect would not typically cause a rightward shift in this context.

-In the Above Figure, the Curve Labeled a Shifts Rightward