Refer to the Figure Below

question 110

Multiple Choice

Refer to the figure 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 supply curves.The changes in aggregate demand and aggregate supply result in a(n) :

• A)increase in the price level.
• B)increase in the real output and no change in the price level.
• C)increase in the real output and the price level.
• D)decline in the real output and no change in the price level.

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Definitions:

Numerator

The top number in a fraction, representing the part of the whole or the dividend in division.

Chi-square Distribution

A statistical distribution that describes the distribution of the sum of the squares of a set of variables, often used in hypothesis testing.

Random Variable

A variable that can take on numerical values based on the outcomes of a random event.

Value

The importance, worth, or usefulness of something or a numerical quantity measured or assigned or computed.