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Refer to Figure 11

Question 105

Multiple Choice

  Refer to Figure 11.3.Assume aggregate demand is represented by AD<sub>3</sub> and full-employment output is $5.8 trillion.To restore price stability,the AD curve must shift A) Leftward by less than $200 billion. B) Leftward by more than $200 billion. C) Rightward by $400 billion. D) Rightward by $800 billion. Refer to Figure 11.3.Assume aggregate demand is represented by AD3 and full-employment output is $5.8 trillion.To restore price stability,the AD curve must shift


A) Leftward by less than $200 billion.
B) Leftward by more than $200 billion.
C) Rightward by $400 billion.
D) Rightward by $800 billion.

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