-The Figure Above Shows the Aggregate Demand,short-Run Aggregate Supply,and Long-Run

question 66

Multiple Choice

-The figure above shows the aggregate demand,short-run aggregate supply,and long-run aggregate supply curves for the U.S.economy.The economy is currently at point A.A cost-push rise in the price level will initially move the economy to point ________ and to point ________.

• A) E when aggregate demand increases; D when the money prices of raw materials rise
• B) C when the money prices of raw materials rise; D when aggregate demand increases
• C) F; A when the money prices of raw materials change
• D) B when aggregate demand decreases; C when the money prices of raw materials rise

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Definitions:

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A colorless and tasteless substance derived from collagen used in food preparation and pharmaceuticals.

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A medical procedure to remove contents from the stomach through a tube inserted into the mouth or nose.