Figure 13-2 shows shifts in the aggregate demand curve. Which of the following combinations would be illustrated by a shift in aggregate demand from AD₀ to AD₂?Figure 13-2 A)A decrease in the minimum wage level combined with an increase in imports B)An increase in the price levels combined with an increase in the rates of interest C)An increase in business tax rates combined with a decrease in consumer confidence D)An increase in the demand for domestic goods combined with an increase in welfare activities of the government E)An increase in imports combined with even higher increase in exports

Question

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The Answer of Figure 13-2 shows shifts in the aggregate demand curve. Which of the following combinations would be illustrated by a shift in aggregate demand from AD₀ to AD₂?Figure 13-2 A)A decrease in the minimum wage level combined with an increase in imports B)An increase in the price levels combined with an increase in the rates of interest C)An increase in business tax rates combined with a decrease in consumer confidence D)An increase in the demand for domestic goods combined with an increase in welfare activities of the government E)An increase in imports combined with even higher increase in exports

Figure 13-2 Shows Shifts in the Aggregate Demand Curve