The Figure Given Below Represents the Long-Run Equilibrium in the Aggregate

question 100

Multiple Choice

The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2

-Refer to Figure 8.2. A movement from equilibrium point A to equilibrium point B would be the result of a(n) :

• A) increase in consumer confidence and a decrease in productivity.
• B) technological advances and domestic price decreases.
• C) decrease in productivity and a decrease in government spending.
• D) increase in production costs and greater consumer confidence.
• E) decrease in domestic prices and decrease in direct taxes.