Multiple Choice
Refer to Figure 10.3.If autonomous investment spending drops by enough to shift the aggregate demand curve from AD1 to AD2,the multiplier effect is likely to
A) Create a second induced shift from AD2 to AD3.
B) Create a second induced shift from AD2 to AD0.
C) Have no effect on the AD curve.
D) Create a second induced shift from AD2 back to AD1.
Correct Answer:

Verified
Correct Answer:
Verified
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