Figure 8-2
-Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₂ illustrate?
A) an increase in investment, combined with an increase in imports
B) the discovery of new, profitable, technological investment opportunities, combined with inventory levels that have fallen below desired levels
C) a reduction in business expectations, combined with the imposition of new tariffs by major trading partners
D) faster growth rates by a major trading partner, combined with an increase in stock market wealth
Correct Answer:
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