Solved

The Figure Shown Displays Various Economic Outcomes

Question 51

Multiple Choice

The figure shown displays various economic outcomes. The figure shown displays various economic outcomes. If the aggregate demand curve shifts from AD<sub>2</sub> to AD<sub>1</sub>, the resulting price and output in the short run would be: A) P <sub>1</sub> and Y <sub>1</sub>. B) P <sub>3</sub> and Y <sub>1</sub>. C) P <sub>4</sub> and Y <sub>1</sub>. D) P <sub>4</sub> and Y <sub>2</sub>. If the aggregate demand curve shifts from AD2 to AD1, the resulting price and output in the short run would be:


A) P 1 and Y 1.
B) P 3 and Y 1.
C) P 4 and Y 1.
D) P 4 and Y 2.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q46: Increases in the overall price level:<br>A) increase

Q47: If the government increases spending by $400

Q48: If an economy is in a recession,

Q49: Which of the following events would cause

Q50: When the economy produces less than its

Q52: When are firms willing to change the

Q53: The negative relationship that exists between the

Q54: During the 1970s, the U.S. economy experienced

Q55: If an economy is in a recession,

Q56: The aggregate supply and aggregate demand model