Answer the Question on the Basis of the Following Aggregate

question 98

Multiple Choice

Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: $\begin{array}{c}\begin{array}{c}\text {Amount of Real }\\\underline{\text {Output Demanded}}\\\$ 200 \\300 \\400 \\500 \\600\end{array}\begin{array}{c}\text {Price Level}\\\underline{\text {(Index Value) }}\\300\\250\\200\\150\\100\end{array}\begin{array}{c}\text {Amount of Real}\\\underline{\text {Output Supplied}}\\\$ 500 \\450 \\400 \\300 \\200\end{array}\end{array}$ Refer to the data.If the amount of real output demanded at each price level falls by $200,this might have been caused by:

• A) an increase in net exports.
• B) a worsening of business expectations.
• C) an increase in consumer wealth.
• D) a decrease in the personal income tax.

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