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Refer to the Graph Above

Question 118

Multiple Choice

Refer to the graph above. Which of the following changes will shift AD<sub>1</sub> to AD<sub>2</sub>? A) A cut in personal and business taxes B) An increase in the value of the dollar relative to other currencies C) A shrinkage in the value of stocks and other financial assets D) An increase in real interest rates Refer to the graph above. Which of the following changes will shift AD1 to AD2?


A) A cut in personal and business taxes
B) An increase in the value of the dollar relative to other currencies
C) A shrinkage in the value of stocks and other financial assets
D) An increase in real interest rates

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