Consider the equation of the Dynamic Aggregate Demand (DAD): Y= Y - αθη (1+aby) ( It – 1*) + (+abyJet where all the variables and parameters are as defined in class

Consider the equation of the Dynamic Aggregate Demand (DAD): Y= Y - αθη (1+aby) ( It – 1*) + (+abyJet where all the variables and parameters are as defined in class. The potential level of output and the central bank's target for the inflation rate are assumed to be constant. All the questions below refer to the standard DAD graph in which it is plotted on the vertical axis and Yt on the horizontal axis. In all the questions, assume that everything else remains unchanged.
Question 4 (1.5 points) A change in the level of output Yt will shift the DAD curve up. shift the DAD curve down. make the DAD curve steeper. imply a movement along the DAD curve.