Refer to the Information Provided in Figure 15

question 42

Multiple Choice

Refer to the information provided in Figure 15.2 below to answer the questions that follow.
Figure 15.2
-Refer to Figure 15.2.If economic policy causes aggregate demand curve shifts from AD₂ to AD₁,then

• A)output decreases to Y₀ and the price level decreases to P₀.
• B)output decreases to less than Y₁.
• C)the price level decreases lower than P₀ and output decreases to Y₀.
• D)none of the above

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