Refer to the Information Provided in Figure 13

question 24

Multiple Choice

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7
-Refer to Figure 13.7. An expansionary fiscal policy followed by a leftward shift in the AS curve could move the economy from Point A to Point ________, and then to Point ________.

• A) D; C
• B) B; E
• C) C; D
• D) E; B

---

Definitions:

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing equal levels of utility.

Preference Map

A relationship between two variables, X and Y, in which a decrease in X is associated with a decrease in Y, and an increase in X is associated with an increase in Y.

Indifference Curve

a graph showing different combinations of two goods that give a consumer equal satisfaction and utility.

Budget Constraint

The limitations on the consumption choices of an individual or household due to limited financial resources.