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-(Figure: Shift of the Aggregate Demand Curve) Refer to Figure: Shift of the Aggregate Demand Curve.An increase in aggregate demand is illustrated by a movement from:

Question

Use the following to answer questions:

-(Figure: Shift of the Aggregate Demand Curve) Refer to Figure: Shift of the Aggregate Demand Curve.An increase in aggregate demand is illustrated by a movement from:

Quizplus · Accepted Answer

An increase in aggregate demand is illustrated by a rightward shift of the AD curve. In the given figure, the AD curve shifts from AD₁ to AD₂, indicating an increase in aggregate demand. Therefore, option A is correct. Option B and C are incorrect as they do not represent a shift in the AD curve. Option D is incorrect as it represents a decrease in aggregate demand, which is opposite to the scenario given in the question.

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