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Refer to the Graph, Which Shows an Aggregate Demand Curve

Question 16

Multiple Choice

Refer to the graph, which shows an aggregate demand curve. If the economy is at point C and the price level increases by 100, then the wealth, interest-rate, and foreign purchases effects will A) move the economy to point A. B) move the economy to point B. C) move the economy to point D. D) shift the AD curve to the left. Refer to the graph, which shows an aggregate demand curve. If the economy is at point C and the price level increases by 100, then the wealth, interest-rate, and foreign purchases effects will


A) move the economy to point A.
B) move the economy to point B.
C) move the economy to point D.
D) shift the AD curve to the left.

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