Refer to the ﬁgure. Assuming this market is representative of the economy as a whole, a positive demand shock will
A) increase both the price level and the quantity of output produced.
B) increase output but leave prices unchanged.
C) lower the price level but leave output unchanged.
D) raise the price level but leave output unchanged.

Question

Refer to the ﬁgure. Assuming this market is representative of the economy as a whole, a positive demand shock will
A) increase both the price level and the quantity of output produced. 
B) increase output but leave prices unchanged. 
C) lower the price level but leave output unchanged. 
D) raise the price level but leave output unchanged.

Quizplus · Accepted Answer

The Answer of  Refer to the ﬁgure. Assuming this market is representative of the economy as a whole, a positive demand shock will
A) increase both the price level and the quantity of output produced. 
B) increase output but leave prices unchanged. 
C) lower the price level but leave output unchanged. 
D) raise the price level but leave output unchanged.

Refer to the ﬁGure