Figure 8-4
-In Figure 8-4,the economy would most likely move from A D₁ to A D₂ because of

Question

Figure 8-4 
-In Figure 8-4,the economy would most likely move from A D₁ to A D₂ because of

Quizplus · Accepted Answer

The shift in the aggregate demand curve from AD₁ to AD₂ implies an increase in demand, which is most likely caused by a demand shock. A supply shock would cause a shift in the short-run aggregate supply curve, while a recession or depression would cause a decrease in aggregate demand, shifting the curve to the left.

Figure 8-4 -In Figure 8-4,the Economy Would Most Likely Move from a Move