-In the Above Figure AD₁ and AS₁ Represent the Original

Multiple Choice

-In the above figure AD₁ and AS₁ represent the original aggregate supply and demand curves and AD₂ and AS₂ show the new aggregate demand and supply curves.The changes in aggregate demand and supply in the above diagram produce:

A) a higher price level.
B) an expansion of real output and a stable price level.
C) an expansion of real output and a higher price level.
D) a decline in real output and a stable price level.