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Refer to the Above Diagrams

Question 140

Multiple Choice

  Refer to the above diagrams.A decline in aggregate expenditures from AE<sub>2</sub> to AE<sub>1</sub>resulting from the wealth, interest rate, and foreign trade effects would be depicted as: A) a movement from A to B along aggregate demand curve AD<sub>1</sub>. B) a movement from C to A along aggregate demand curve AD<sub>1</sub>. C) a shift of aggregate demand from AD<sub>1</sub> to AD<sub>2</sub>. D) a shift of aggregate demand from AD<sub>2</sub> to AD<sub>1</sub>. Refer to the above diagrams.A decline in aggregate expenditures from AE2 to AE1resulting from the wealth, interest rate, and foreign trade effects would be depicted as:


A) a movement from A to B along aggregate demand curve AD1.
B) a movement from C to A along aggregate demand curve AD1.
C) a shift of aggregate demand from AD1 to AD2.
D) a shift of aggregate demand from AD2 to AD1.

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