A) $A D _ { 1 }$ To $A D _ { 2 }$

Multiple Choice

A) $A D _ { 1 }$ to $A D _ { 2 }$ , which increases the price level from $P _ { 1 }$ to $P _ { 2 }$ and increases real domestic output from $Q _ { 3 }$ to $Q _ { 2 }$ .
B) $\mathrm { AS } _ { 1 }$ to $\mathrm { AS } _ { 2 }$ , which increases the price level from $P _ { 1 }$ to $P _ { 2 }$ and decreases real output from $Q _ { 1 }$ to $Q _ { 2 }$
C) $\mathrm { AD } _ { 1 }$ to $A \mathrm { D } _ { 2 }$ , which increases the price level from $P _ { 2 }$ to $P _ { 3 }$ and increases real output from $Q _ { 2 }$ to $Q _ { 1 }$
D) $\mathrm { AS } _ { 2 }$ to $\mathrm { AS } _ { 3 }$ , which increases the price level from $P _ { 2 }$ to $P _ { 3 }$ and decreases real output from $Q _ { 2 }$ to $Q _ { 3 }$ .