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Figure 15-2 %) LRAS SRAS 5 6 7 8 9 *(%) Refer to the Figure 15-2. In a closed economy, what would cause the aggregate demand
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Option a
a decrease in the stock prices is because of the less confidence in the future and that decreases the AD from AD to AD*
The increase in confidence and government spending increases AD and shifts to the right
an increase in the price level is a movement along the curve and not a shift of the curve.

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