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Refer to the Figure Above

Question 127

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Refer to the figure above. The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to overfull employment. This situation can be best illustrated in the figure above as a: A) Shift from AD<sub>2</sub> to AD<sub>1</sub> B) Shift from AD<sub>1</sub> to AD<sub>2</sub> C) Movement along AD<sub>1</sub> from Q<sub>4</sub> to Q<sub>1</sub> D) Movement along AD<sub>2</sub> from Q<sub>2</sub> to Q<sub>3</sub> Refer to the figure above. The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment. This situation can be best illustrated in the figure above as a:


A) Shift from AD2 to AD1
B) Shift from AD1 to AD2
C) Movement along AD1 from Q4 to Q1
D) Movement along AD2 from Q2 to Q3

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