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Exhibit: Shift in Aggregate Demand
-(Exhibit: Shift in Aggregate Demand) Assume that the economy is initially at point A with aggregate demand given by AD₂. A shift in the aggregate demand curve to AD₀ could be the result of either a(n) ______ in the money supply or a(n) ______ in velocity.

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Exhibit: Shift in Aggregate Demand

-(Exhibit: Shift in Aggregate Demand) Assume that the economy is initially at point A with aggregate demand given by AD₂. A shift in the aggregate demand curve to AD₀ could be the result of either a(n) ______ in the money supply or a(n) ______ in velocity.

Quizplus · Accepted Answer

A shift in the aggregate demand curve to the right, as described, could be caused by an increase in the money supply or an increase in the velocity of money. Both factors would increase the overall demand in the economy.

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