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Based on the graph, which of the following would cause the aggregate demand ( AD ) curve to decrease from AD 2 to AD 1
Based on the graph, which of the following would cause the aggregate demand AD curve to decrease from AD to AD
a There is an increase in the price of oil.
b The economy has been producing more than its fullemployment output level, and wages and input prices begin to rise.
c There is a reduction in income tax rates.
d There is a reduction in consumer confidence about future growth in the economy.
e There is an increase in the general price level that reduces real wealth.
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