Figure 11-5 -Refer to Figure 11-5. If the Economy Is at Point

Multiple Choice

Figure 11-5
-Refer to Figure 11-5. If the economy is at point c, an open market purchase would cause

A) a shift of the short-run aggregate supply curve from AS₁ to AS₂.
B) a shift of the short-run aggregate supply curve from AS₂ to AS₁.
C) a shift of the aggregate demand curve from AD₁ to AD₂.
D) a shift of the aggregate demand curve from AD₂ to AD₁.