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Questions › UGC-NET › UGC-NET 2023 › Q52
2 marksMacroeconomics › AD-AS model › The aggregate demand curveHardabout 2 min

UGC-NET 2023 Question 52: AD-AS model

Consider the following statements about the Aggregate Demand (AD) relation under price flexibility and say which are correct.

(A) The AD curve shifts right if autonomous investment rises.

(B) The AD curve shifts right if net exports rise in an open economy.

(C) The AD curve shifts left if money supply contracts.

(D) As price rises, shifting the LM curve, the AD curve shifts to the left.

Choose the correct answer from the options given below:

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Answer and worked solution

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AD-AS model has come up 59 times in 7 exams since 2004.

What this question tests

This question is on The aggregate demand curve, part of AD-AS model in Macroeconomics.

Why aggregate demand slopes down and what shifts it.

TestStop has 10 past-paper questions on this subtopic.

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