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Refer to the Diagram Given Below

Question 108

Multiple Choice

Refer to the diagram given below. Refer to the diagram given below. When the real output decreases from Q<sub>1</sub> and the price level increases from P<sub>1</sub>, there should have been a: A) shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>3</sub>. B) shift in the aggregate supply curve from AS<sub>2</sub> to AS<sub>1</sub>. C) movement along the aggregate demand curve from e<sub>2</sub> to e<sub>1</sub>. D) movement along the aggregate demand curve from e<sub>1</sub> to e<sub>2</sub>. When the real output decreases from Q1 and the price level increases from P1, there should have been a:


A) shift in the aggregate supply curve from AS1 to AS3.
B) shift in the aggregate supply curve from AS2 to AS1.
C) movement along the aggregate demand curve from e2 to e1.
D) movement along the aggregate demand curve from e1 to e2.

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