12.2 Equilibrium in Aggregate Demand and Supply Analysis

question 5

Multiple Choice

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,consider a point A on the aggregate supply curve and above the aggregate demand curve.At this point,________.

• A)quantity demanded equals output,but the inflation rate will fall,so output will rise
• B)quantity demanded is greater than quantity supplied,so the inflation rate will rise
• C)output is greater than the quantity demanded,so output will fall
• D)the aggregate demand curve will shift to the right until quantity demanded is equal to quantity supplied
• E)none of the above

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