Answered: What could have caused the aggregate…

What could have caused the aggregate demand curve to shift from AD2 to AD1? Increase in net export Boom in the stock market A decrease in investment Increased level of government spending

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to the figure above. What could have caused the aggregate demand curve to shift from AD2 to AD1?

Increase in net export
Boom in the stock market
A decrease in investment
Increased level of government spending

PRICE LEVEL
P₁
LRAS
AD₁
Y, Y₂ Y₂
QUANTITY OF OUTPUT
SRAS:
SRAS,
AD₂

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