Figure 82 Alt Text for Figure 8

question 7

Multiple Choice

Figure 8.2 Alt text for Figure 8.2: In figure 8.2, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.2: Line AE1, begins a little less than half way along the x-axis and slopes up toward the end of the x-axis.Line AE2, begins at a point half way on the x-axis and slopes up to the top right corner.Line AE2 is to the left of AE1, and is on a similar path as the line AE1.Line Y = AE, originates at the vertex and slopes upward toward the top right corner.Line Y = AE meets line AE1 at point K, half way along both lines, and meets line AE2 at point N, plotted close to the right end of the line AE2.Point J is plotted a little less than half way along the line AE1, to the left of point K.Another point L is marked close to the right end of line AE1, to the right of point K.
-Refer to Figure 8.2.If the Canadian economy is currently at point K, which of the following could cause it to move to point N?

• A)The price level in Canada rises relative to the price level in other countries.
• B)Parliament passes investment tax incentives.
• C)The interest rate rises.
• D)Household wealth declines.
• E)The Canadian economy grows more quickly than in other countries.

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Definitions:

Lincoln Memorial

A monument in Washington D.C. dedicated to honoring President Abraham Lincoln, the 16th president of the United States, and symbolizing his ideals of freedom and equality.

Daughters of the American Revolution

A lineage-based membership service organization for women who are direct descendants of a person involved in the United States' efforts towards independence.

African-Americans Vote

refers to the enfranchisement and participation of African-American citizens in the electoral process, a right fully secured with the Voting Rights Act of 1965.

Democratic

Pertaining to or characterized by principles of democracy, where the power is vested in the people who rule either directly or through freely elected representatives.