-Refer to Figure 15-4.If the economy is currently at point X,an increase in output will
A) move the economy to point A
B) move the economy to point B
C) shift the aggregate supply curve up to curve AS2
D) shift the aggregate supply curve down to curve AS3
E) have no effect on the price level and there will be no movement away from point X.

Question

-Refer to Figure 15-4.If the economy is currently at point X,an increase in output will
A) move the economy to point A 
B) move the economy to point B 
C) shift the aggregate supply curve up to curve AS2 
D) shift the aggregate supply curve down to curve AS3 
E) have no effect on the price level and there will be no movement away from point X.

Quizplus · Accepted Answer

An increase in output typically moves the economy along the aggregate supply curve, leading to a higher price level, which corresponds to a movement to point B.