Refer to the Diagram Given Below

question 172

Multiple Choice

Refer to the diagram given below. Suppose an increase in aggregate demand shifts AD₁ to AD₂.At P₁, the amount of output demanded will be:

• A)equal to the amount of output supplied.
• B)greater than the amount of output supplied.
• C)less than the amount of output supplied.
• D)at the full-employment level of output.

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