The figure above shows aggregate demand curves.
-Based on the figure above, the aggregate demand curve will shift from AD₀ to AD₂ when
A)potential GDP increases.
B)the price level falls.
C)taxes are lowered.
D)government expenditure increases.
E)the Federal Reserve raises the interest rate.

Question

The figure above shows aggregate demand curves.
-Based on the figure above, the aggregate demand curve will shift from AD₀ to AD₂ when
A)potential GDP increases. 
B)the price level falls. 
C)taxes are lowered. 
D)government expenditure increases. 
E)the Federal Reserve raises the interest rate.

Quizplus · Accepted Answer

The Answer of  
The figure above shows aggregate demand curves.
-Based on the figure above, the aggregate demand curve will shift from AD₀ to AD₂ when
A)potential GDP increases. 
B)the price level falls. 
C)taxes are lowered. 
D)government expenditure increases. 
E)the Federal Reserve raises the interest rate.

The Figure Above Shows Aggregate Demand Curves