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Figure 7-6 -Refer to Figure 7-6. Suppose the Economy Is Initially in Is

Question 132

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Figure 7-6 Figure 7-6   -Refer to Figure 7-6. Suppose the economy is initially in short-run equilibrium at B. A shift from AD<sub>1</sub> to AD<sub>2</sub> could have been caused by all of the following except A)  an increase in consumer optimism. B)  economic prosperity in foreign economies. C)  a personal income tax cut. D)  an increase in the price level from P<sub>a</sub> to P<sub>b</sub>.
-Refer to Figure 7-6. Suppose the economy is initially in short-run equilibrium at B. A shift from AD1 to AD2 could have been caused by all of the following except


A) an increase in consumer optimism.
B) economic prosperity in foreign economies.
C) a personal income tax cut.
D) an increase in the price level from Pa to Pb.

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