-The Figure Above Shows the Aggregate Demand, Short- Run Aggregate

question 380

Multiple Choice

-The figure above shows the aggregate demand, short- run aggregate supply, and long- run aggregate supply curves for the economy of Tomorrowland. The economy is currently at point A. A cost- push rise in the price level will initially move the economy to point and to point
)

• A) E when aggregate demand increases; D when the money prices of raw materials rise
• B) C when the money prices of raw materials rise; D when aggregate demand increases
• C) B when aggregate demand decreases; C when the money prices of raw materials rise
• D) F; A when the money prices of raw materials change

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