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The Figure Given Below Represents the Equilibrium Real GDP and Price

Question 8

Multiple Choice

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.
Figure 8.3
The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3 -In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation) ? A) AS<sub>1</sub> to AS<sub>2</sub> B) AD<sub>1</sub> to AD<sub>2</sub> C) AD<sub>2</sub> to AD<sub>1</sub> D) AD<sub>2</sub> toAD<sub>3</sub> E) AS<sub>1</sub> to AS<sub>3</sub>

-In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation) ?


A) AS1 to AS2
B) AD1 to AD2
C) AD2 to AD1
D) AD2 toAD3
E) AS1 to AS3

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