-Refer to the above diagram.If AD₁ shifts to AD₂,then the equilibrium output and price level are: A) P₁ and Q₃. B) P₂ and Q₃. C) P₁ and Q₂. D) P₂ and Q₂.

Name: -Refer to the above diagram.If AD 1 shifts to AD 2 ,then the equilibrium output and price level are: A) P 1 and Q 3 . B) P 2 and Q 3 . C) P 1 and Q 2 . D) P 2 and Q 2 .
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Question

Quizplus · Accepted Answer

When AD shifts from AD1 to AD2, the equilibrium moves to a higher price level (P2) and a higher output level (Q2).

-Refer to the Above Diagram