Figure 12.2

-Consider the economy described in Figure 12.2. The shift in aggregate demand from AD₁to AD₂could have been initiated by

Question

Figure 12.2 -Consider the economy described in Figure 12.2. The shift in aggregate demand from AD₁to AD₂could have been initiated by

Quizplus · Accepted Answer

The shift in aggregate demand from AD₁ to AD₂ could have been initiated by an increase in autonomous net exports, which causes an increase in aggregate demand at every price level. This is shown by the shift of the aggregate demand curve to the right.

Figure 12.2 -Consider the Economy Described in Figure 12.2. the Shift in 12.2