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Exhibit: Shift in Aggregate Demand Assume That the Economy

Question 56

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Exhibit: Shift in Aggregate Demand Exhibit: Shift in Aggregate Demand Assume that the economy is initially at point A with aggregate demand given by AD<sub>2</sub>. A shift in the aggregate demand curve to AD<sub>0</sub> could be the result of either a(n) _____ in the money supply or a(n) _____ in velocity. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease Assume that the economy is initially at point A with aggregate demand given by AD2. A shift in the aggregate demand curve to AD0 could be the result of either a(n) _____ in the money supply or a(n) _____ in velocity.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

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