Use the Following to Answer Questions

question 48

Multiple Choice

Use the following to answer questions
Figure: Shifts in Aggregate Demand
-(Figure: Shifts in Aggregate Demand) Starting at the equilibrium point b,if investment or exports increase,the demand curve will shift to _____,thus _____ the price level and _____ real output.

• A) AD₁;increasing;decreasing
• B) AD₂;decreasing;decreasing
• C) AD₁;increasing;increasing
• D) AD₂;increasing;decreasing

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Definitions:

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