In the above figure, the economy would most likely move from AD1 to AD2 because of
A) an aggregate supply shock.
B) an aggregate demand shock.
C) a recession.
D) a depression.

Question

Quizplus · Accepted Answer

The economy would most likely move from AD1 to AD2 due to an aggregate demand shock. This could be caused by factors such as changes in consumer or business confidence, government policy, or international events that cause a shift in the overall demand for goods and services.

In the Above Figure, the Economy Would Most Likely Move