-Refer to the Above Diagrams

Multiple Choice

-Refer to the above diagrams. Assuming a constant price level, an increase in aggregate expenditures from AE₁ to AE₂ would:

A) move the economy from A to B along AD₁.
B) move the economy from B to A along AD₁.
C) increase aggregate demand from AD₁ to AD₂.
D) decrease aggregate demand from AD₂ to AD₁.