Figure 13-2 Shows Shifts in the Aggregate Demand Curve

Multiple Choice

Figure 13-2 shows shifts in the aggregate demand curve. Which of the following combinations would be illustrated by a shift in aggregate demand from AD₀ to AD₁?Figure 13-2

A) A slow increase in government purchases combined with a large decrease in investment
B) An increase in consumption combined with an increase in exports
C) An increase in business tax rates combined with a decrease in consumer confidence
D) An increase in the growth rates of a major trading partner combined with a severe slowdown in stock market wealth
E) An increase in exports combined with an even larger increase in imports