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The Derivation of the Aggregate Demand Curve (AD) in the Open

Question 9

Multiple Choice

The derivation of the aggregate demand curve (AD) in the open economy builds upon the Fact that, as the price level rises, other things equal,


A) the LM curve shifts to the left but the IS and BP curves do not shift.
B) the LM and BP curves shift to the left but the IS curve does not shift.
C) the IS and LM curves shift to the left but the BP curve does not shift.
D) the IS, LM, and BP curves all shift to the left.

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