Which of the following macroeconomic events is most likely to occur if the stock market rises dramatically?

a movement down along the aggregate demand curve

the aggregate demand curve shifts to the left

the aggregate demand curve shifts to the right

the aggregate supply curve shifts to the right, but only in the short run

Solutions

Expert Solution

Ans (C)

when stock market rises it means people will now get higher returns which leads to increase their income. Thus, leads to rise in demand.

So that AD curve shift to right

Rahul Sunny answered 1 year ago

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