(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD 2 to AD 1? A. an increase in government purchases B. an increasing consumer pessimism about the future C. a tax cut D. an decrease in interest rates
(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD 2 to AD 1? A. an increase in government purchases B. an increasing consumer pessimism about the future C. a tax cut D. an decrease in interest rates
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 1P
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![Figure: Predicting Aggregate Demand Shifts
Aggregate Price Level (P)
Reference: Ref 9-1
ADI
Aggregate Output (Q)
AS
AD₂
(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD 2 to AD 1?
A. an increase in government purchases
B. an increasing consumer pessimism about the future
C. a tax cut
D. an decrease in interest rates](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e9de2e0-ec50-4fdb-b335-a93e964ec8d9%2F28bd2271-920e-4af0-8e01-bed6d3c7bcab%2Fdvkk5ti_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Figure: Predicting Aggregate Demand Shifts
Aggregate Price Level (P)
Reference: Ref 9-1
ADI
Aggregate Output (Q)
AS
AD₂
(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD 2 to AD 1?
A. an increase in government purchases
B. an increasing consumer pessimism about the future
C. a tax cut
D. an decrease in interest rates
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