Refer to the following figure when answering the following questions.
Figure 13.1: AD Curve
-Consider Figure 13.1. Holding the inflation rate constant, beginning at point e, if there is an aggregate demand shock, the AD curve shifts:
A) right to point c.
B) right to point a.
C) left to point g.
D) to point d.
E) Not enough information is given.

Question

Refer to the following figure when answering the following questions.
Figure 13.1: AD Curve 
-Consider Figure 13.1. Holding the inflation rate constant, beginning at point e, if there is an aggregate demand shock, the AD curve shifts:
A) right to point c. 
B) right to point a. 
C) left to point g. 
D) to point d. 
E) Not enough information is given.

Quizplus · Accepted Answer

Without seeing Figure 13.1, it's impossible to determine the direction of the AD curve shift or the resulting equilibrium point.

Refer to the Following Figure When Answering the Following Questions