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(Figure: Shifts in Aggregate Demand) Starting at Equilibrium Point B

Question 31

Multiple Choice

(Figure: Shifts in Aggregate Demand) Starting at equilibrium point b, if investment or exports increase, the demand curve will shift to _____, thus _____ the price level and _____ real output. (Figure: Shifts in Aggregate Demand) Starting at equilibrium point b, if investment or exports increase, the demand curve will shift to _____, thus _____ the price level and _____ real output. A) AD<sub>1</sub>; increasing; decreasing B) AD<sub>2</sub>; decreasing; decreasing C) AD<sub>1</sub>; increasing; increasing D) AD<sub>2</sub>; increasing; decreasing


A) AD1; increasing; decreasing
B) AD2; decreasing; decreasing
C) AD1; increasing; increasing
D) AD2; increasing; decreasing

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