Question 13 1 p Suppose the Australian economy is experiencing an unexpected spell of high inflation with prices rising significantly more than anticipated. How would the aggregate demand (AD) curve be affected? O Unusually high inflation renders Australian goods more expensive and less competitive in the international market. Consequently, the AD curve shifts LEFT due to a fall in net exports O Rising prices lead to a movement along the AD curve. The AD curve does NOT shift. O Unusually high inflation renders Australian goods more expensive and less competitive in the international market. Consequently, the AD curve shifts RIGHT due to a fall in net exports O Rising prices lead to a fall in consumption. Given consumption accounts for two-third of aggregate demand in Australia, the AD curve will shift LEFT following a drop in consumption