Multiple Choice
Figure 15-4
-In Figure 15-4,if initial equilibrium is at point A and if there is an unanticipated increase in aggregate demand from A D₁ to A D₂,then
A) in the short run real output will remain at Q₁.
B) in the short run real output will increase above Q₁,but in the long run it will return to Q₁.
C) in the long run real output will increase above Q₁.
D) real output will increase above Q₁ in both the short run and in the long run.
Correct Answer:

Verified
Correct Answer:
Verified
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