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-Refer to the Above Diagram

Question 3

Multiple Choice

-Refer to the above diagram.If aggregate supply shifts from AS<sub>1</sub> to AS<sub>2</sub>,then the price level will: A) increase and real domestic output will increase. B) decrease and real domestic output will increase. C) increase and real domestic output will decrease. D) decrease and real domestic output will decrease.
-Refer to the above diagram.If aggregate supply shifts from AS1 to AS2,then the price level will:


A) increase and real domestic output will increase.
B) decrease and real domestic output will increase.
C) increase and real domestic output will decrease.
D) decrease and real domestic output will decrease.

Correct Answer:

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