Multiple Choice
Figure 10.3
Panel (a) Panel (b)
-Refer to Figure 10.3..A positive demand shock accompanied by a decrease in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b) .
A) a shift from AE₂ to AE₃; a movement from point B to point C
B) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁
C) a shift from AE₁ to AE₂; a movement from point A to point B
D) a shift from AE₁ to AE₃; a movement from point A to point C
Correct Answer:
Verified
Correct Answer:
Verified
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