A) $A D _ { 1 }$ To $A D _ { 2 }$

question 20

Multiple Choice

• A) \(A D _ { 1 }\) to \(A D _ { 2 }\), which increases the price level from \(P _ { 1 }\) to \(P _ { 2 }\) and increases real domestic output from \(Q _ { 3 }\) to \(Q _ { 2 }\).
• B) \(\mathrm { AS } _ { 1 }\) to \(\mathrm { AS } _ { 2 }\), which increases the price level from \(P _ { 1 }\) to \(P _ { 2 }\) and decreases real output from \(Q _ { 1 }\) to \(Q _ { 2 }\)
• C) \(\mathrm { AD } _ { 1 }\) to \(A \mathrm { D } _ { 2 }\), which increases the price level from \(P _ { 2 }\) to \(P _ { 3 }\) and increases real output from \(Q _ { 2 }\) to \(Q _ { 1 }\)
• D) \(\mathrm { AS } _ { 2 }\) to \(\mathrm { AS } _ { 3 }\), which increases the price level from \(P _ { 2 }\) to \(P _ { 3 }\) and decreases real output from \(Q _ { 2 }\) to \(Q _ { 3 }\).

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