Solved

-Refer to the Above Diagram

Question 185

Multiple Choice

  -Refer to the above diagram.When output increases from Q<sub>1</sub> and the price level decreases from P<sub>1</sub>,this change will: A)  be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. B)  be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>3</sub>. C)  result in a movement along the aggregate demand curve from e<sub>1</sub> to e<sub>2</sub>. D)  result in a movement along the aggregate demand curve from e<sub>3</sub> to e<sub>1</sub>.
-Refer to the above diagram.When output increases from Q1 and the price level decreases from P1,this change will:


A) be caused by a shift in the aggregate supply curve from AS1 to AS2.
B) be caused by a shift in the aggregate supply curve from AS1 to AS3.
C) result in a movement along the aggregate demand curve from e1 to e2.
D) result in a movement along the aggregate demand curve from e3 to e1.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions