- Refer to the above diagram. When AD₁ shifts to AD₂, real output: A) increases from Q₁ to Q₂, while the price level stays the same. B) increases from Q₁ to Q₃, while the price level declines. C) increases from Q₁ to Q₂, while the price level rises. D) stays the same, while the price level rises.

Question

Quizplus · Accepted Answer

When the aggregate demand curve shifts from AD1 to AD2, it typically results in an increase in real output from Q1 to Q2, accompanied by a rise in the price level.

- Refer to the Above Diagram