Multiple Choice
Refer to Figure 11.3.Assume aggregate demand is represented by AD1 and full-employment output is $5.6 trillion.To restore price stability,the AD curve must shift
A) Leftward by $400 billion.
B) Leftward by $800 billion.
C) Rightward by $400 billion.
D) Rightward by $800 billion.
Correct Answer:
Verified
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