- Refer to Figure 16

question 92

Multiple Choice

- Refer to Figure 16.3.A shift from AS₃ to AS₂ could be caused by

• A)A decrease in government spending.
• B)A decrease in the money supply.
• C)An increase in the marginal tax rate.

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Definitions:

Demanders

Individuals or entities that express a willingness and ability to purchase goods or services at a given price.

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract.

Factors of Production

The resources utilized in the production of goods and services, traditionally categorized into land, labor, and capital.

Circular-Flow Model

A model that illustrates the movement of resources and money between firms and households in an economy.