6- How does the aggregate demand curve change if aggregate demand increases in an economy? a)shifts left B)shifts to the right NS)slides down D)constant TO)slides up

Answered: How does the aggregate demand curve…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 20CTQ: Suppose the economy is operating at potential GDP when It experiences an increase in export demand....

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How does the aggregate demand curve change if aggregate demand increases in an economy?

a)	shifts left

B)	shifts to the right

NS)	slides down

constant

TO)

slides up

Expert Solution

Step 1

$The aggregate demand encompases the following : C = Consumption I = Investment G = Government spending X - M = Net export Thus, AD = C + I + G + (N - X)$

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