Refer to the Graph, Which Shows an Aggregate Demand Curve

question 16

Multiple Choice

Refer to the graph, which shows an aggregate demand curve. If the economy is at point C and the price level increases by 100, then the wealth, interest-rate, and foreign purchases effects will

• A) move the economy to point A.
• B) move the economy to point B.
• C) move the economy to point D.
• D) shift the AD curve to the left.

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