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Refer to the Figure Given Below

Question 198

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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.The change in aggregate supply from AS<sub>1</sub> to AS<sub>2</sub> could be caused by: A) a reduction in the price level. B) an increased availability of entrepreneurial talent. C) an increase in business taxes. D) the real-balances effect, interest-rate effect, and foreign-trade effect. 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.The change in aggregate supply from AS1 to AS2 could be caused by:


A) a reduction in the price level.
B) an increased availability of entrepreneurial talent.
C) an increase in business taxes.
D) the real-balances effect, interest-rate effect, and foreign-trade effect.

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