Figure 8-1
-According to Figure 8-1,________ in aggregate demand between real GDP levels Q₀ and Q₁ would most likely result in some inflation.
A)an increase
B)a decrease
C)a lateral movement
D)movement

Question

Figure 8-1 
-According to Figure 8-1,________ in aggregate demand between real GDP levels Q₀ and Q₁ would most likely result in some inflation.
A)an increase 
B)a decrease 
C)a lateral movement 
D)movement

Quizplus · Accepted Answer

According to the figure, if there is an increase in aggregate demand between real GDP levels Q₀ and Q₁, the economy would reach a higher price level, indicating some inflation. This is because the increase in demand would lead to a shortage of goods and services, causing prices to rise. Therefore, option A is the correct choice.

Figure 8-1 -According to Figure 8-1,________ in Aggregate Demand Between Real GDP