The Figure Below Shows the Aggregate Demand and Supply Curves

question 7

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S.In this figure,as the aggregate demand curve shifts from AD to AD',the equilibrium price level in period 1:

• A)increases from 3 to 4.
• B)decreases from 4 to 3.
• C)decreases from 4 to 1.
• D)increases from 1 to 4.
• E)decreases from 4 to 2.

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