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.
Correct Answer:

Verified
Correct Answer:
Verified
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