-Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A) Panel A only.
B) Panels A and C only.
C) Panel D only.
D) None of the panels.

Question

-Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A) Panel A only. 
B) Panels A and C only. 
C) Panel D only. 
D) None of the panels.

Quizplus · Accepted Answer

An increase in the price level typically results in a movement along the aggregate demand curve, not a shift, so none of the panels would represent this effect unless they show such a movement.

-Refer to the Above Figures