Refer to the Diagram Given Below

question 33

Multiple Choice

Refer to the diagram given below. If aggregate supply shifts from AS₁ to AS₂, then the price level will:

• A)increase and real domestic output will increase.
• B)decrease and real domestic output will increase.
• C)increase and real domestic output will decrease.
• D)decrease and real domestic output will decrease.

---

Definitions:

Cortés

Hernán Cortés, a Spanish Conquistador known for leading an expedition that caused the fall of the Aztec Empire in the early 16th century.

Aztec Empire

A Mesoamerican empire that thrived in central Mexico in the 14th to 16th centuries, known for its complex social structure, achievements in mathematics and astronomy, and the capital city of Tenochtitlan.

Montezuma

The ninth Aztec emperor of Mexico, noted for his inability to effectively deal with the Spanish conquest led by Cortés.

West Coast

Usually refers to the westernmost coastal areas of a continent, in many contexts relating to the Pacific coast of the United States.