The figure below shows the aggregate demand and supply curves for the U.S. In this figure, as the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1:

A) increases from 3 to 4.
B) decreases from 4 to 3.
C) decreases from 4 to 1.
D) increases from 1 to 4.
E) decreases from 4 to 2.

Question

The figure below shows the aggregate demand and supply curves for the U.S. In this figure, as the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1:

A) increases from 3 to 4. 
B) decreases from 4 to 3. 
C) decreases from 4 to 1. 
D) increases from 1 to 4. 
E) decreases from 4 to 2.

Quizplus · Accepted Answer

The Answer of The figure below shows the aggregate demand and supply curves for the U.S. In this figure, as the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1:

A) increases from 3 to 4. 
B) decreases from 4 to 3. 
C) decreases from 4 to 1. 
D) increases from 1 to 4. 
E) decreases from 4 to 2.

The Figure Below Shows the Aggregate Demand and Supply Curves