Use the Following Figure to Answer the Questions : Figure

question 3

Multiple Choice

Use the following figure to answer the questions : Figure 8.3:
-Assume the economy is initially in equilibrium on AD₂ and AS₂.Which curve would have shifted,and in what direction would it have shifted,if a new equilibrium were to occur at an output level of $300 billion and a price level of P₃ in Figure 8.3?

• A)Aggregate supply would have shifted to the left.
• B)Aggregate supply would have shifted to the right.
• C)Aggregate demand would have shifted to the left.
• D)Aggregate demand would have shifted to the right.

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Definitions:

Reactive Model

A model or approach that focuses on responding to problems or situations as they occur, rather than anticipating and preventing them beforehand.

Vocabulary

The collection of words that an individual knows and utilizes within a specific language.

Active Model

A conceptual framework that proposes systems or entities are constantly engaged in activities or processes that lead to changes or outcomes.

Early Pioneers

Individuals or groups who are among the first to explore, settle, or innovate in a new area or field.