Exhibit 10.3 -Refer to Exhibit 10.3, Which Shows an Aggregate Demand-Aggregate Supply

Multiple Choice

Exhibit 10.3

-Refer to Exhibit 10.3, which shows an aggregate demand-aggregate supply model. The shift from AS to AS' is likely to occur when _____

A) the actual price level is higher than expected.
B) the actual price level is lower than expected.
C) the unemployment rate is lower than the natural rate.
D) the actual output is more than the potential output.
E) the aggregate demand curve intersects the short-run aggregate supply curve at the potential output.