Multiple Choice
Use the following to answer questions
Figure: Predicting Aggregate Demand Shifts
-(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD2 to AD1?
A) a tax cut
B) an increase in interest rates
C) an increase in government purchases
D) an improvement of consumer expectations about the future
Correct Answer:

Verified
Correct Answer:
Verified
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