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Refer to the Above Graph

Question 42

Multiple Choice

Refer to the above graph.Assume the economy is at the initial position of B<sub>1</sub>.An increase in aggregate demand will tend to: A) temporarily shift the economy to point B<sub>2</sub>. B) temporarily shift the economy to point C<sub>1</sub>. C) permanently shift the economy to point C<sub>1</sub>. D) have no effect in shifting the economy from point B<sub>1</sub>. Refer to the above graph.Assume the economy is at the initial position of B1.An increase in aggregate demand will tend to:


A) temporarily shift the economy to point B2.
B) temporarily shift the economy to point C1.
C) permanently shift the economy to point C1.
D) have no effect in shifting the economy from point B1.

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