According to Figure 11.2,a shift from AD₁ to AD₂ will

Question

Quizplus · Accepted Answer

According to Figure 11.2, a shift from AD₁ to AD₂ will result in a higher level of real output (Y) and a higher price level (P). This shift will move the equilibrium from point X to point Y, where the price level is higher than before. Therefore, option C is the correct answer. Option A and B are wrong because they do not reflect the changes in the equilibrium position resulting from the shift in the aggregate supply curve. Option D is incorrect because the market mechanism does not automatically move the economy to point Z in this case.