Multiple Choice
-The leftward shift in the aggregate demand (AD) curve,from AD1 to AD2,shown in the diagram above may be caused by a(n)
A) decrease in consumption induced by a decrease in national income.
B) decrease in consumption induced by a rise in the price level.
C) decrease in consumption induced by a fall in real wealth due to a rise in the price level.
D) decrease in autonomous private investment.
E) increase in autonomous consumption.
Correct Answer:
Verified
Correct Answer:
Verified
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