Exhibit: AD-AS Shifts ​ Starting from Long-Run Equilibrium at a with Output

question 43

Multiple Choice

Exhibit: AD-AS Shifts ​ Starting from long-run equilibrium at A with output equal to and the price level equal to P₁, a cost-push inflation would be represented by a shift from:

• A)AD₁ to AD_2.
• B)AD₁ to AD_3.
• C)AS₁ to AS_2.
• D)AS₁ to AS_3.

---

Definitions:

Oil Leases

Contracts in which the owner of mineral rights grants permission to an individual or company to explore for and produce oil or gas on a specific tract of land for a specified period in exchange for payments or royalties.

Interstate Banking

Banking operations that involve transactions across state lines, allowing banks to operate branches in multiple states.

Oil Prices

The cost per barrel of crude oil, which can fluctuate based on supply and demand factors, geopolitical events, and market speculation.

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.