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-Refer to the Above Figure

Question 226

Multiple Choice

-Refer to the above figure. An increase in aggregate demand between real Gross Domestic Product (GDP) levels Y<sub>0</sub> and Y<sub>1</sub> A) would most likely result in some inflation. B) would not increase output since the economy is already working at full capacity. C) would have no effect on the price level. D) would cause price levels to fall.
-Refer to the above figure. An increase in aggregate demand between real Gross Domestic Product (GDP) levels Y0 and Y1


A) would most likely result in some inflation.
B) would not increase output since the economy is already working at full capacity.
C) would have no effect on the price level.
D) would cause price levels to fall.

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