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In the AD–AS diagram, an increase in money supply growth causes: a shift of the aggregate...

In the AD–AS diagram, an increase in money supply growth causes:

a shift of the aggregate demand curve to the left.

a shift of the aggregate demand curve to the right.

a downward movement along the aggregate demand curve.

an upward movement along the aggregate demand curve.

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Answer #1

Answer. Increase in money supply shifts the aggregate demand curve to the right.(As increase in money supply increases consumer spending in aggregate, which shifts the aggregate demand curve right.)

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