Question 1
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.


Refer to Figure 27.1. An aggregate demand shift from
AD
1 to
AD
0 can be caused by
◦ a decrease in government spending.
◦ an increase in money supply.
◦ a decrease in the price level.
◦ an increase in the price level.
Question 2
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.


Refer to Figure 27.1. Suppose the economy is at Point
A, an increase in the price level can cause a movement to Point
◦
E.
◦
B.
◦
C.
◦
D.