The following unlabelled diagram represents an AD-AS model. Suppose the economy starts at point A and moves to point B. Which of the following things could have caused this move:

Question

The following unlabelled diagram represents an AD-AS model. Suppose the economy starts at point A and moves to point B. Which of the following things could have caused this move:

Answer

An increase in endogenous taxes.

Answer

Expansionary monetary policy.

Answer

None of the other answers are correct

Answer

A favourable shock to the AD curve

Answer

A favourable shock to the AS curve

Answer

An unfavourable shock to the AS curve

Answer

An unfavourable shock to the AD curve

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The following unlabelled diagram represents an AD-AS model. Suppose the economy ...

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