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Exhibit 7-1 -In Exhibit 7-1 the Economy Is Initially Facing AD0 and

Question 120

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Exhibit 7-1 Exhibit 7-1 -In Exhibit 7-1 the economy is initially facing AD<sub>0 </sub>and AS<sub>0</sub>.Which of the following best describes the occurance of demand-pull deflation? A) The aggregate demand curve shifts to AD<sub>1</sub>. B) The agregate supply curve shifts to AS<sub>1</sub>. C) The aggregate demand curve shifts to AD<sub>1</sub> and the aggregate supply curve shifts to AS<sub>1</sub>. D) The aggregate demand curve shifts to AD<sub>2</sub>. E) The aggregate supply curve shifts to AS<sub>2</sub>.
-In Exhibit 7-1 the economy is initially facing AD0 and AS0.Which of the following best describes the occurance of demand-pull deflation?


A) The aggregate demand curve shifts to AD1.
B) The agregate supply curve shifts to AS1.
C) The aggregate demand curve shifts to AD1 and the aggregate supply curve shifts to AS1.
D) The aggregate demand curve shifts to AD2.
E) The aggregate supply curve shifts to AS2.

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