Refer to Figure 34-7. The aggregate-demand curve could shift from AD1 to AD2 as a result of O a. an increase in government purchases. O b. a decrease in net exports. Oc. households saving a smaller fraction of their income. Od. a decrease in the price level.

Refer to Figure 34-7. The aggregate-demand curve could shift from AD1 to AD2 as a result of O a. an increase in government purchases. O b. a decrease in net exports. Oc. households saving a smaller fraction of their income. Od. a decrease in the price level.

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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

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Question

Price
Level
Figure 34-7.
LRAS
Refer to Figure 34-7. The aggregate-demand curve could shift from AD1 to AD2 as a result of
O a. an increase in government purchases.
Ob. a decrease in net exports.
Oc. households saving a smaller fraction of their income.
d. a decrease in the price level.
a
AD1
AD2
AS
Quantity
of Output

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