The Derivation of the Aggregate Demand Curve (AD) in the Closed

question 26

Multiple Choice

The derivation of the aggregate demand curve (AD) in the closed economy builds upon the fact that, as the domestic price level rises, other things equal, the

• A) LM curve shifts to the left.
• B) LM curve shifts to the right.
• C) IS curve shifts to the left.
• D) IS curve shifts to the right.