In the study of macroeconomics, production leads to income, and income leads to production in a continuing cycle.
Indicate whether the statement is true or false
Question 2
Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal.
B) Both the labor force and the population increased.
C) Winter storms cause factories in the north to be shut down for several weeks.
D) Government spending increased causing aggregate demand to increase.