-In the above figure, the shift from AD₁to AD₂might have been the result of A) an increase in the quantity of money. B) an increase in government expenditure. C) a decrease in taxes. D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

All the options (increase in the quantity of money, increase in government expenditure, and decrease in taxes) can lead to an increase in aggregate demand, causing a rightward shift from AD1 to AD2.

-In the Above Figure, the Shift from AD1 to AD2

-In the Above Figure, the Shift from AD₁to AD₂