Refer to Figure 11

question 30

Multiple Choice

Refer to Figure 11.3.Assume aggregate demand is represented by AD₁ and full-employment output is $5.6 trillion.To restore price stability,the AD curve must shift

• A)Leftward by $400 billion.
• B)Leftward by $800 billion.
• C)Rightward by $400 billion.
• D)Rightward by $800 billion.

---

Definitions:

Henry Wallace

Henry Wallace was an American politician who served as the 33rd Vice President of the United States, known for his progressive views and advocacy for the common man.

Progressive Party

A political party in the United States, formed in the early 20th century, advocating for reforms to address issues like wealth inequality, labor rights, and clean government.

Soviet Union

A socialist state on the Eurasian continent that existed from 1922 to 1991, comprising Russia and several other republics, playing a central role in world affairs during its existence.

William Levitt

An American real-estate developer credited with creating the modern American suburb through the development of mass-produced, affordable housing, notably Levittown.