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Question 78

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Use the following to answer questions :
Exhibit: AD-AS Shifts
Use the following to answer questions : Exhibit: AD-AS Shifts -(Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to Y and the price level equal to P<sub>1</sub>,a cost-push inflation would be represented by a shift from: A) AD<sub>1</sub> to AD<sub>2</sub>. B) AD<sub>1</sub> to AD<sub>3</sub>. C) AS<sub>1</sub> to AS<sub>2</sub>. D) AS<sub>1</sub> to AS<sub>3</sub>.
-(Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to Y and the price level equal to P1,a cost-push inflation would be represented by a shift from:


A) AD1 to AD2.
B) AD1 to AD3.
C) AS1 to AS2.
D) AS1 to AS3.

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