A) move the economy from A to C along AD $$A D _ { 1 } .$$
B) move the economy from C to A along AD $$A D _ { 1 } .$$
C) increase aggregate demand from AD $$A D _ { 1 } \text { to } A D _ { 2 }$$
D) decrease aggregate demand from AD $$A D _ { 2 } \text { to } A D _ { 1 }$$

Question

A) move the economy from A to C along AD $$A D _ { 1 } .$$ 
B) move the economy from C to A along AD $$A D _ { 1 } .$$ 
C) increase aggregate demand from AD $$A D _ { 1 } \text { to } A D _ { 2 }$$ 
D) decrease aggregate demand from AD $$A D _ { 2 } \text { to } A D _ { 1 }$$

Quizplus · Accepted Answer

Moving the economy from A to C along AD1 would require increasing aggregate demand, which is represented by shifting the AD curve to the right from AD1 to AD2. Therefore, the best option is to increase aggregate demand from AD1 to AD2.

A) Move the Economy from a to C Along AD AD1.A D _ { 1 } .AD1​.

A) Move the Economy from a to C Along AD $A D _ { 1 } .$