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Refer to the Information Provided in Figure 13

Question 1

Multiple Choice

Refer to the information provided in Figure 13.2 below to answer the questions that follow.
Refer to the information provided in Figure 13.2 below to answer the questions that follow. Figure 13.2 -Refer to Figure 13.2.Firms respond to an increase in government spending by mostly raising their prices when the aggregate demand curve shifts from A) AD<sub>1</sub> to AD<sub>2</sub>. B) AD<sub>3</sub> to AD<sub>4</sub>. C) AD<sub>5</sub> to AD<sub>6</sub>. D) AD<sub>6</sub> to AD<sub>1</sub>. Figure 13.2
-Refer to Figure 13.2.Firms respond to an increase in government spending by mostly raising their prices when the aggregate demand curve shifts from


A) AD1 to AD2.
B) AD3 to AD4.
C) AD5 to AD6.
D) AD6 to AD1.

Correct Answer:

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