- Refer to the Above Diagram

Multiple Choice

- Refer to the above diagram. When output decreases from Q₁ and the price level increases from P₁, then this change will:

A) be caused by a shift in the aggregate supply curve from AS₁ to AS₃.
B) be caused by a shift in the aggregate supply curve from AS₂ to AS₁.
C) result in a movement along the aggregate demand curve from e₂ to e₁.
D) result in a movement along the aggregate demand curve from e₁ to e₂.