Refer to the Graph Above, Which Shows an Aggregate Demand

question 145

Multiple Choice

Refer to the graph above, which shows an aggregate demand. 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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