Diagram 1 -Refer to Diagram 1 Above.A Shift in Aggregate Demand Would

question 37

Multiple Choice

Diagram 1

-Refer to Diagram 1 above.A shift in aggregate demand would lead to a substantial drop in inflation and for a moderate decline in national income in the case of

• A)AD₄ to AD₃.
• B)AD₂ to AD₃.
• C)AD₄ to AD₅.
• D)AD₅ to AD₄.

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