Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Exhibit: IS-LM to Aggregate Demand
-(Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₁ shifts to LM₂ because the price level decreases from P₁ to P₂ then, holding other factors constant:

A) the aggregate demand curve will shift to the right.
B) the aggregate demand curve will shift to the left.
C) this represents a movement up the aggregate demand curve.
D) this represents a movement down the aggregate demand curve.