Refer to the Diagram $P _ { 1 }$ Because of an Increase in Aggregate Demand,
the
A) Economy

question 150

Multiple Choice

Refer to the diagram. If the price level rises above $P _ { 1 }$ because of an increase in aggregate demand,
The

• A) economy will move up along curve B and output will temporarily increase.
• B) long-run aggregate supply curve C will shift upward.
• C) short-run aggregate supply curve B will automatically shift to the right.
• D) economy's output ?rst will decline, then increase, and ?nally return to \(Q _ { 1 }\)

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Definitions:

Utility

A measure of the satisfaction, usefulness, or pleasure that individuals get from consuming goods and services.

Economics Books

Published works that study the production, distribution, and consumption of goods and services.

Coffee

A popular beverage made by brewing roasted and ground beans from the Coffea plant.

Total Utility

The total satisfaction or happiness derived by a consumer from consuming a certain quantity of goods or services.