Multiple Choice
-In the above figure AD1 and AS1 represent the original aggregate supply and demand curves and AD2 and AS2 show the new aggregate demand and supply curves.The changes in aggregate demand and supply in the above diagram produce:
A) a higher price level.
B) an expansion of real output and a stable price level.
C) an expansion of real output and a higher price level.
D) a decline in real output and a stable price level.
Correct Answer:
Verified
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