For the following questions, consult the diagram below.
Figure 15-2
-Refer to Figure 15-2. In a closed economy, which of the following would cause the aggregate demand curve to shift from AD to AD*?
A) an increase in government purchases
B) a decrease in stock prices
C) consumers and firms becoming more optimistic about the future
D) an increase in the price level
Correct Answer:
Verified
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