Figure 33-7.
-Refer to Figure 33-7. Suppose the economy starts at Y. If aggregate demand increases from AD2 to AD3, then the economy moves to
A) V.
B) W.
C) X.
D) Z.

Name: Figure 33-7. -Refer to Figure 33-7. Suppose the economy starts at Y. If aggregate demand increases from AD2 to AD3, then the economy moves to A) V. B) W. C) X. D) Z.
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Question

Figure 33-7. 
-Refer to Figure 33-7. Suppose the economy starts at Y. If aggregate demand increases from AD2 to AD3, then the economy moves to
A) V. 
B) W. 
C) X. 
D) Z.

Quizplus · Accepted Answer

If aggregate demand increases from AD2 to AD3, the economy moves from point Y to point V, which is on the new aggregate demand curve AD3.

Figure 33-7. -Refer to Figure 33-7. Suppose the Economy Starts at Y