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Answer the Next Six Questions on the Basis of the Following

Question 40

Multiple Choice

Answer the next six questions on the basis of the following diagram.
Answer the next six questions on the basis of the following diagram.    -A shift in aggregate demand from AD<sub>3 </sub>to AD<sub>4</sub>: A)  may have been caused by countercyclical policy directed at bringing about full employment B)  a tax increase and cuts in government spending C)  higher interest rates D)  will make the price level fall
-A shift in aggregate demand from AD3 to AD4:


A) may have been caused by countercyclical policy directed at bringing about full employment
B) a tax increase and cuts in government spending
C) higher interest rates
D) will make the price level fall

Correct Answer:

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