A) a movement from A to C along aggregate demand curve AD $$A D _ { 1 }$$
B) a movement from C to A along aggregate demand curve AD $$A D _ { 1 } \text {. }$$
C) a shift of aggregate demand from AD $$A D _ { 1 } \text { to } A D _ { 2 } \text {. }$$
D) a shift of aggregate demand from AD $$A D _ { 2 } \text { to } A D _ { 1 } \text {. }$$

Question

A) a movement from A to C along aggregate demand curve AD $$A D _ { 1 }$$ 
B) a movement from C to A along aggregate demand curve AD $$A D _ { 1 } \text {. }$$ 
C) a shift of aggregate demand from AD $$A D _ { 1 } \text { to } A D _ { 2 } \text {. }$$ 
D) a shift of aggregate demand from AD $$A D _ { 2 } \text { to } A D _ { 1 } \text {. }$$

Quizplus · Accepted Answer

The movement is along the same aggregate demand curve AD [AD1]. A shift in the aggregate demand curve would occur if there was a change in any of the variables that determine aggregate demand (such as consumer spending or government spending), which would result in a new curve, such as AD2. However, there is no indication of a shift in the question, only a movement along the curve. Therefore, the correct answer is B) a movement from C to A along aggregate demand curve AD [AD1].

A) a Movement from a to C Along Aggregate Demand AD1A D _ { 1 }AD1​

A) a Movement from a to C Along Aggregate Demand $A D _ { 1 }$