Refer to the Diagram

question 40

Multiple Choice

Refer to the diagram. If the aggregate supply curve shifted from AS₀ to AS₁ and the aggregate demand curve remains at AD₀, we could say that

• A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased.
• B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased.
• C) an increase in the amount of output supplied has occurred.
• D) aggregate supply has increased and the price level has risen to G.

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An emotional bond that develops between infants and their caregivers, influencing the child's social and emotional development.

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