-Refer to Exhibit 8-3.A movement from point A to point B on AD₁ would have been the result of A) a decrease in the price level. B) an increase in the price level. C) an increase in income taxes. D) a decrease in income taxes.

Question

Quizplus · Accepted Answer

A movement from point A to point B on the aggregate demand curve AD₁ indicates a decrease in the price level, leading to an increase in the quantity of goods and services demanded.