Figure 8-1 -According to Figure 8-1,an Increase in Aggregate Demand Beyond Real

Multiple Choice

Figure 8-1
-According to Figure 8-1,an increase in aggregate demand beyond real GDP level Q₁ will result in

A) higher unemployment and excess productive capacity.
B) higher output,but not higher prices.
C) higher prices,but no change in output.
D) falling prices and increases in output.