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A) AD1A D _ { 1 } To AD2A D _ { 2 }

Question 142

Multiple Choice

   A)   A D _ { 1 }  to  A D _ { 2 } , which increases the price level from  P _ { 1 }  to  P _ { 2 }  and increases real domestic output from  Q _ { 3 }  to  Q _ { 2 } . B)   \mathrm { AS } _ { 1 }  to  \mathrm { AS } _ { 2 } , which increases the price level from  P _ { 1 }  to  P _ { 2 }  and decreases real output from  Q _ { 1 }  to  Q _ { 2 }  C)   \mathrm { AD } _ { 1 }  to  A \mathrm { D } _ { 2 } , which increases the price level from  P _ { 2 }  to  P _ { 3 }  and increases real output from  Q _ { 2 }  to  Q _ { 1 }  D)   \mathrm { AS } _ { 2 }  to  \mathrm { AS } _ { 3 } , which increases the price level from  P _ { 2 }  to  P _ { 3 }  and decreases real output from  Q _ { 2 }  to  Q _ { 3 } .


A) AD1A D _ { 1 } to AD2A D _ { 2 } , which increases the price level from P1P _ { 1 } to P2P _ { 2 } and increases real domestic output from Q3Q _ { 3 } to Q2Q _ { 2 } .
B) AS1\mathrm { AS } _ { 1 } to AS2\mathrm { AS } _ { 2 } , which increases the price level from P1P _ { 1 } to P2P _ { 2 } and decreases real output from Q1Q _ { 1 } to Q2Q _ { 2 }
C) AD1\mathrm { AD } _ { 1 } to AD2A \mathrm { D } _ { 2 } , which increases the price level from P2P _ { 2 } to P3P _ { 3 } and increases real output from Q2Q _ { 2 } to Q1Q _ { 1 }
D) AS2\mathrm { AS } _ { 2 } to AS3\mathrm { AS } _ { 3 } , which increases the price level from P2P _ { 2 } to P3P _ { 3 } and decreases real output from Q2Q _ { 2 } to Q3Q _ { 3 } .

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