Use the following to answer questions Figure: Shifts in Aggregate Demand -(Figure: Shifts in Aggregate Demand)Starting at the equilibrium point b,if investment or exports increase,the demand curve will shift to _____,thus _____ the price level and _____ real output. A) AD₁;increasing;decreasing B) AD₂;decreasing;decreasing C) AD₁;increasing;increasing D) AD₂;increasing;decreasing

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An increase in investment or exports will shift the aggregate demand curve to the right (AD1), increasing both the price level and real output.

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