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Refer to the Diagram

Question 40

Multiple Choice

Refer to the diagram. If the aggregate supply curve shifted from AS<sub>0</sub> to AS<sub>1</sub> and the aggregate demand curve remains at AD<sub>0</sub>, we could say that A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased. B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased. C) an increase in the amount of output supplied has occurred. D) aggregate supply has increased and the price level has risen to G.
Refer to the diagram. If the aggregate supply curve shifted from AS0 to AS1 and the aggregate demand curve remains at AD0, we could say that


A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased.
B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased.
C) an increase in the amount of output supplied has occurred.
D) aggregate supply has increased and the price level has risen to G.

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