A decrease in the inflation rate corresponds to a _________ the aggregate demand (ADI)curve,and a decrease in autonomous aggregate demand corresponds to a _________ the aggregate demand (ADI)curve.
A) shift to the left of;movement up
B) shift to the left of;shift to the right of
C) movement up;movement down
D) movement up;shift to the right of
E) movement down;shift to the left of

Question

Quizplus · Accepted Answer

A decrease in the inflation rate leads to a movement down along the ADI curve, while a decrease in autonomous aggregate demand causes the ADI curve to shift to the left.

A Decrease in the Inflation Rate Corresponds to a _________