Multiple Choice
Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) 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.
Correct Answer:

Verified
Correct Answer:
Verified
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