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Exhibit: AD-AS Shifts Yˉ\bar { Y }

Question 27

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Use the following to answer questions :
Exhibit: AD-AS Shifts  Use the following to answer questions : Exhibit: AD-AS Shifts   -(Exhibit: AD-AS Shifts)  Starting from long-run equilibrium at A with output equal to  \bar { Y }  and the price level equal to P<sub>1</sub>, a demand-pull inflation would be represented by a shift from: A)  AD<sub>1</sub> to AD<sub>2</sub> B)  AD<sub>1</sub> to AD<sub>3</sub> C)  AS<sub>1</sub> to AS<sub>2</sub> D)  AS<sub>1</sub> to AS<sub>3</sub>
-(Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to Yˉ\bar { Y } and the price level equal to P1, a demand-pull inflation would be represented by a shift from:


A) AD1 to AD2
B) AD1 to AD3
C) AS1 to AS2
D) AS1 to AS3

Correct Answer:

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