Refer to the Information Provided in Figure 11

Multiple Choice

Refer to the information provided in Figure 11.8 below to answer the questions that follow. Figure 11.8
-Refer to Figure 11.8. This economy cannot continue to produce Y₁ (or at point B. because

A) the price of raw material and wages will increase shifting the aggregate supply curve to AS₁.
B) the price of inputs will decrease, shifting the aggregate supply curve to AS₂.
C) the price of raw material will increase, shifting the aggregate demand curve to AD₂.
D) all of the above