Use the figure below to answer the following questions.

Figure 26.3.3
-Refer to Figure 26.3.3. In which of the graphs would we predict that eventually the price level will rise and real GDP will fall, all else remaining the same?
A)(a)only
B)(b)only
C)(c)only
D)(d)only
E)both (c)and (d)

Question

Use the figure below to answer the following questions.
  
Figure 26.3.3
-Refer to Figure 26.3.3. In which of the graphs would we predict that eventually the price level will rise and real GDP will fall, all else remaining the same?
A)(a)only 
B)(b)only 
C)(c)only 
D)(d)only 
E)both (c)and (d)

Quizplus · Accepted Answer

In (c) and (d), the aggregate supply curve shifts to the left, causing the price level to rise and real GDP to fall.

Use the Figure Below to Answer the Following Questions