-In the Figure Above, the Shift in the Aggregate Demand

question 187

Multiple Choice

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of

• A)a fall in the price level.
• B)a tax cut.
• C)an increased expectation of a recession that lowers people's expected future incomes.
• D)a decrease in the foreign exchange rate.
• E)a rise in the price level.

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