Refer to the information provided in Figure 11.4 below to answer the questions that follow. Figure 11.4
-Refer to Figure 11.4. 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 11.4 below to answer the questions that follow.  Figure 11.4
-Refer to Figure 11.4. 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

When the economy is at Point A and there is an increase in aggregate demand, the economy moves along the aggregate supply curve to a point with a higher level of output and price level, which is described by Point B. This movement represents the economy's response to increased demand, resulting in higher output and prices.

Refer to the Information Provided in Figure 11