Refer to Figure 11

question 105

Multiple Choice

Refer to Figure 11.3.Assume aggregate demand is represented by AD₃ and full-employment output is $5.8 trillion.To restore price stability,the AD curve must shift

• A)Leftward by less than $200 billion.
• B)Leftward by more than $200 billion.
• C)Rightward by $400 billion.
• D)Rightward by $800 billion.

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