Aggregate Demand and Supply Curves Have Been Widely Used to Analyze

Multiple Choice

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy.Figure 5-3 shows four diagrams that represent different changes in the macroeconomy.Choose the diagram that best represents the situations described in the following questions.
Figure 5-3
-An increase in aggregate demand is most likely to result in

A) inflation.
B) recession.
C) economic stagnation.
D) a decrease in real GDP.