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Refer to the Figure Above

Question 82

Multiple Choice

Refer to the figure above. If AD<sub>1</sub> shifts to AD<sub>2</sub>, then the equilibrium output: A) Increases from Q<sub>1</sub> to Q<sub>3</sub> while the price level falls from P<sub>2</sub> to P<sub>1</sub> B) Increases from Q<sub>1</sub> to Q<sub>2</sub> while the price level falls from P<sub>2</sub> to P<sub>1</sub> C) Increases from Q<sub>1</sub> to Q<sub>3</sub> while the price level rises from P<sub>1</sub> to P<sub>2</sub> D) Increases from Q<sub>1</sub> to Q<sub>2</sub> while the price level rises from P<sub>1</sub> to P<sub>2</sub> Refer to the figure above. If AD1 shifts to AD2, then the equilibrium output:


A) Increases from Q1 to Q3 while the price level falls from P2 to P1
B) Increases from Q1 to Q2 while the price level falls from P2 to P1
C) Increases from Q1 to Q3 while the price level rises from P1 to P2
D) Increases from Q1 to Q2 while the price level rises from P1 to P2

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