Use the following graph to answer the next question.Suppose an economy's full employment output is at the level Qf shown on the graph. Further, suppose the economy's current aggregate demand is represented by AD1. If the government swiftly implements a stimulus program that immediately shifts the economy's aggregate demand to AD2, the aggregate demand in the short-to-medium term would be most closely represented by

A. AD0.
B. AD1.
C. AD2.
D. AD3.


Answer: D

Economics

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