(Figure: Three Aggregate Demand Curves)

question 279

Multiple Choice

(Figure: Three Aggregate Demand Curves)
Figure: Three Aggregate Demand Curves
Consider the three aggregate demand curves shown in the graph. Movement from Point A to Point D represents:

• A) an increase in spending growth from 2% to 3%.
• B) an increase in spending growth from 4% to 6%.
• C) an increase in real GDP growth, but not spending growth.
• D) an increase in inflation, but not spending growth.

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