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Refer to the Figure Below

Question 174

Multiple Choice

Refer to the figure below. Refer to the figure below. In the above figure, AD<sub>1</sub> and AS<sub>1</sub> represent the original aggregate demand and aggregate supply curves, respectively.AD<sub>2</sub> and AS<sub>2</sub> show the new aggregate demand and supply curves.The changes in aggregate demand and aggregate supply result in a(n) : A) increase in the price level. B) increase in the real output and no change in the price level. C) increase in the real output and the price level. D) decline in the real output and no change in the price level. In the above figure, AD1 and AS1 represent the original aggregate demand and aggregate supply curves, respectively.AD2 and AS2 show the new aggregate demand and supply curves.The changes in aggregate demand and aggregate supply result in a(n) :


A) increase in the price level.
B) increase in the real output and no change in the price level.
C) increase in the real output and the price level.
D) decline in the real output and no change in the price level.

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