When Deriving the Aggregate Demand (AD) Curve from the Aggregate

question 202

Multiple Choice

When deriving the aggregate demand (AD) curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

• A)an increase in the value of household wealth and reduced consumption expenditures.
• B)an increase in interest rates and lower investment expenditures.
• C)an increase in exports and imports.
• D)an increase in Canadian resource prices and an increase in aggregate supply.

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