Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
23, 24, 25
![23) A movement from point a to point c could be caused by a(n)
A) increase in government spending. C) increase in taxes.
B) increase in the price of oil.
D) increase in short-run aggregate supply.
24) A movement from point c to point d could be caused by a(n)
A) decrease in government spending.
B) decrease in the price of oil.
C) increase in taxes.
D) decrease in aggregate demand.
AS.
AS,
AD 2
AD
Output y
Figure 9.2
25) A movement from point c to point b could be caused by a simultaneous
A) increase in taxes; decrease in government spending
B) decrease in taxes; increase in the price of oil
C) decrease in government spending; decrease in the price of oil
D) increase in government spending; increase in the money supply
? _and
?_.
Price level P](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1873ffe9-3332-4b2e-9b81-0aea445c20c1%2F49cafa14-0db5-4323-9894-56632207a52b%2Fxbd3fi_processed.png&w=3840&q=75)
Transcribed Image Text:23) A movement from point a to point c could be caused by a(n)
A) increase in government spending. C) increase in taxes.
B) increase in the price of oil.
D) increase in short-run aggregate supply.
24) A movement from point c to point d could be caused by a(n)
A) decrease in government spending.
B) decrease in the price of oil.
C) increase in taxes.
D) decrease in aggregate demand.
AS.
AS,
AD 2
AD
Output y
Figure 9.2
25) A movement from point c to point b could be caused by a simultaneous
A) increase in taxes; decrease in government spending
B) decrease in taxes; increase in the price of oil
C) decrease in government spending; decrease in the price of oil
D) increase in government spending; increase in the money supply
? _and
?_.
Price level P
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