As the price of a pound of peanuts falls, the A) demand for ...

[shenderson6]

As the price of a pound of peanuts falls, the
 
  A) demand for peanuts increases.
  B) demand for peanuts decreases.
  C) quantity of peanuts demanded increases.
  D) Both answers A and C are correct.

Question 2

Based on the figure above, the aggregate demand curve will shift from AD0 to AD2 when
 
  A) potential GDP increases.
  B) the price level falls.
  C) taxes are lowered.
  D) government expenditure increases.
  E) the Federal Reserve raises the interest rate.

[pangili4]

Answer to Question 1

C

Answer to Question 2

E