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Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to:
  • a)
    Increase in average propensity to save
  • b)
    Increase in aggugate supply
  • c)
    Increase in marginal propensity to consume
  • d)
    Increase in autonomous inv estment
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Assume a two sector economy in the above diagram, the initial demand c...
In two sector economy, AD=C+I and since the diagram shows parallel shift in AD from AD  to AD‚  so it is due to increase in autonomous Investment
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Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to:a)Increase in average propensity to saveb)Increase in aggugate supplyc)Increase in marginal propensity to consumed)Increase in autonomous inv estmentCorrect answer is option 'D'. Can you explain this answer?
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Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to:a)Increase in average propensity to saveb)Increase in aggugate supplyc)Increase in marginal propensity to consumed)Increase in autonomous inv estmentCorrect answer is option 'D'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to:a)Increase in average propensity to saveb)Increase in aggugate supplyc)Increase in marginal propensity to consumed)Increase in autonomous inv estmentCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assume a two sector economy in the above diagram, the initial demand curve AD1 shifts upward to AD2 due to:a)Increase in average propensity to saveb)Increase in aggugate supplyc)Increase in marginal propensity to consumed)Increase in autonomous inv estmentCorrect answer is option 'D'. Can you explain this answer?.
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