-Refer to the above graph.What events would tend to move the economy from point B₂ to C₂? A) a tight monetary policy B) a contractionary fiscal policy C) an increase in aggregate demand D) an increase in aggregate supply

Question

Quizplus · Accepted Answer

An increase in aggregate demand would shift the economy from point B2 to C2, as it would lead to higher output and potentially higher prices, moving the economy along the aggregate supply curve.

-Refer to the Above Graph