Solved

-The Rightward Shift of the Aggregate Demand (AD)curve,from AD1 to AD2,shown

Question 39

Multiple Choice

  -The rightward shift of the aggregate demand (AD) curve,from AD1 to AD2,shown in the diagram above may be caused by a(n)  A)  increase in consumption induced by an increase in national income. B)  increase in consumption induced by a fall in the price level. C)  increase in consumption induced by a rise in real wealth due to a fall in the price level. D)  increase in autonomous consumption. E)  decrease in private investment induced by a fall in the interest rate due to a fall in the price level.
-The rightward shift of the aggregate demand (AD) curve,from AD1 to AD2,shown in the diagram above may be caused by a(n)


A) increase in consumption induced by an increase in national income.
B) increase in consumption induced by a fall in the price level.
C) increase in consumption induced by a rise in real wealth due to a fall in the price level.
D) increase in autonomous consumption.
E) decrease in private investment induced by a fall in the interest rate due to a fall in the price level.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions