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Refer to the Figure Given Below

Question 54

Multiple Choice

Refer to the figure given below. Refer to the figure given below. In the above figure, AD<sub>1</sub> and AS<sub>1</sub> represent the original aggregate demand and aggregate supply curves, respectively.AD<sub>2</sub> and AS<sub>2</sub> show the new aggregate demand and aggregate supply curves.At the original equilibrium price and quantity, this economy is experiencing: A) inflation. B) economic growth. C) full employment. D) less than full-capacity output. In the above figure, AD1 and AS1 represent the original aggregate demand and aggregate supply curves, respectively.AD2 and AS2 show the new aggregate demand and aggregate supply curves.At the original equilibrium price and quantity, this economy is experiencing:


A) inflation.
B) economic growth.
C) full employment.
D) less than full-capacity output.

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