Multiple Choice
-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.
Correct Answer:
Verified
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