Figure 15.2 -Refer to Figure 15.2. This Economy Cannot Continue to Produce

Multiple Choice

Figure 15.2
-Refer to Figure 15.2. This economy cannot continue to produce Y₁ at point B because:

A) the price of inputs will decrease shifting the aggregate supply curve to AS₂.
B) the price of raw material will increase shifting the aggregate demand curve to AD₂.
C) the price of raw material and wages will increase shifting the aggregate supply curve to AS₁.
D) all of the above