-Refer to Exhibit 8-3.A shift in aggregate demand from AD₁ to AD₂ could have been the result of A) a decrease in the price level. B) an increase in the price level. C) an increase in foreign real national income. D) a decrease in foreign real national income.

Question

Quizplus · Accepted Answer

An increase in foreign real national income can lead to an increase in demand for domestic goods and services, thereby shifting the aggregate demand curve to the right.