-The Figure Above Shows the Aggregate Demand, Short-Run Aggregate Supply

Multiple Choice

-The figure above shows the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves for the U.S. economy. The economy is currently at point A. A cost-push rise in the price level will initially move the economy to point ________ and to point ________.

A) E when aggregate demand increases; D when the money prices of raw materials rise
B) C when the money prices of raw materials rise; D when aggregate demand increases
C) F when the money prices of raw materials rise; E when aggregate demand increases
D) B when aggregate demand decreases; C when the money prices of raw materials rise