Refer to the Figure Given Below

question 198

Multiple Choice

Refer to the figure given below. In the above figure, AD₁ and AS₁ represent the original aggregate demand and aggregate supply curves, respectively.AD₂ and AS₂ show the new aggregate demand and aggregate supply curves.The change in aggregate supply from AS₁ to AS₂ could be caused by:

• A)a reduction in the price level.
• B)an increased availability of entrepreneurial talent.
• C)an increase in business taxes.
• D)the real-balances effect, interest-rate effect, and foreign-trade effect.

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