Multiple Choice
Figure 34-7
-Refer to Figure 34-7. Which of the following is correct?
A) A wave of optimism could move the economy from point a to point b.
B) If aggregate demand moves from AD1 to AD2, the economy will stay at point b in both the short run and long run.
C) It is possible that either fiscal or monetary policy might have caused the shift from AD1 to AD2.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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