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The Figure Below Depicts the Three Possible Aggregate Demand Curves

Question 60

Multiple Choice

The figure below depicts the three possible aggregate demand curves. The figure below depicts the three possible aggregate demand curves. If the Bank of Canada (the Canadian central bank) ________ Canadian dollar(s) ,the Canadian dollar will depreciate and the aggregate demand curve will shift from AD<sub>2</sub> to ________. A) devalues the; AD<sub>1</sub> B) prints more; AD<sub>1</sub> C) decreases the supply of; AD<sub>3</sub> D) increases the supply of; AD<sub>3</sub> E) prints less; AD<sub>3</sub> If the Bank of Canada (the Canadian central bank) ________ Canadian dollar(s) ,the Canadian dollar will depreciate and the aggregate demand curve will shift from AD2 to ________.


A) devalues the; AD1
B) prints more; AD1
C) decreases the supply of; AD3
D) increases the supply of; AD3
E) prints less; AD3

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