Refer to the information provided in Figure 12.4 below to answer the questions that follow.
Figure 12.4
-Refer to Figure 12.4.Suppose the economy is at Point A,an increase in aggregate demand moves the economy to Point
A)E.
B)B.
C)C.
D)D.

Question

Refer to the information provided in Figure 12.4 below to answer the questions that follow.
  Figure 12.4
-Refer to Figure 12.4.Suppose the economy is at Point A,an increase in aggregate demand moves the economy to Point
A)E. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

An increase in aggregate demand typically moves the economy along the short-run aggregate supply curve to a higher output and price level, which is often represented by a movement from Point A to Point B in economic models.

Refer to the Information Provided in Figure 12