(Figure: Shift of the Aggregate Demand Curve) Use Figure: Shift

Multiple Choice

(Figure: Shift of the Aggregate Demand Curve) Use Figure: Shift of the Aggregate Demand Curve. A movement from point C on AD2 to point A on AD1 may result from:

A) an increase in investment spending following optimistic GDP forecasts
B) an increase in investment spending following optimistic GDP forecasts.
C) a decrease in investment spending following pessimistic GDP forecasts
D) a decrease in investment spending following pessimistic GDP forecasts.
E) a decrease in taxes paid by businesses.
F) a decrease in taxes paid by businesses
G) lower interest rates
H) lower interest rates.