-Refer to the Above Diagram

question 67

Multiple Choice

-Refer to the above diagram.When output decreases from Q₁ and the price level increases from P₁,then this change will:

• A) be caused by a shift in the aggregate supply curve from AS₁ to AS₃.
• B) be caused by a shift in the aggregate supply curve from AS₂ to AS₁.
• C) result in a movement along the aggregate demand curve from e₂ to e₁.
• D) result in a movement along the aggregate demand curve from e₁ to e₂.

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