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Refer to the Information Provided in Figure 12

Question 26

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Refer to the information provided in Figure 12.2 below to answer the questions that follow. Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2 -Refer to Figure 12.2. 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 12.2
-Refer to Figure 12.2. 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.

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