Refer to the Information Provided in Figure 26

Multiple Choice

Refer to the information provided in Figure 26.8 below to answer the question(s) that follow. Figure 26.8
-Refer to Figure 26.8. This economy cannot continue to produce Y_{2 (or at Point D)} because

A) the price of raw material and wages will decrease shifting the aggregate supply curve to AS₂.
B) the price of inputs will increase, shifting the aggregate supply curve to AS₁.
C) the price of raw material will decrease, shifting the aggregate demand curve to AD₁.
D) all of the above.