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- Refer to the Above Diagram

Question 41

Multiple Choice

- Refer to the above diagram. When output increases from Q<sub>1</sub> and the price level decreases from P<sub>1</sub>, this change will: A) be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. B) be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>3</sub>. C) result in a movement along the aggregate demand curve from e<sub>1</sub> to e<sub>2</sub>. D) result in a movement along the aggregate demand curve from e<sub>3</sub> to e<sub>1</sub>.
- Refer to the above diagram. When output increases from Q1 and the price level decreases from P1, this change will:


A) be caused by a shift in the aggregate supply curve from AS1 to AS2.
B) be caused by a shift in the aggregate supply curve from AS1 to AS3.
C) result in a movement along the aggregate demand curve from e1 to e2.
D) result in a movement along the aggregate demand curve from e3 to e1.

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