Refer to Figure 11

Refer to Figure 11.1.Assume aggregate demand is initially represented by AD₁ and full-employment output is $6.0 trillion.If aggregate demand increases by the amount of the GDP gap,equilibrium will occur at

A) Point a.
B) Point b.
C) Point c.
D) Point D.If aggregate demand increased by the amount of the recessionary GDP gap,we would get a shift from AD₁ to AD_2. The new equilibrium would occur at point c,leaving the economy short of full employment (Q_F) .Some of the increased demand pushes up prices instead of output.