Answer to Question #221587 in Economics for Les

Question

Which of the following policy changes [1] would result in the movement from A to B? an increase in government spending [2] [3] [4] an increase in the interest rate an increase in income taxes a decrease in government spending

Answer 1

If the movement from A to B shows the increase in economic activity, then it can be caused by an increase in government spending.

So, the correct answer is [1].