Exhibit 8-3 -Refer to Exhibit 8-3.A shift in aggregate demand from AD₁ to AD₂ would 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 would lead to higher demand for domestic goods, shifting aggregate demand from AD1 to AD2.

Exhibit 8-3 -Refer to Exhibit 8-3.A Shift in Aggregate Demand from AD1

Exhibit 8-3 -Refer to Exhibit 8-3.A Shift in Aggregate Demand from AD₁