-In the Above Figure AD₁ and AS₁ Represent the Original

question 148

Multiple Choice

-In the above figure AD₁ and AS₁ represent the original aggregate supply and demand curves and AD₂ and AS₂ show the new aggregate demand and supply curves.The changes in aggregate demand and supply in the above diagram produce:

• A) a higher price level.
• B) an expansion of real output and a stable price level.
• C) an expansion of real output and a higher price level.
• D) a decline in real output and a stable price level.

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Definitions:

Inductive Approach

A reasoning method that starts from specific observations to develop general conclusions or theories.

Persuasive Claim

A statement or argument made with the intention of convincing others to adopt a certain belief, change an opinion, or undertake an action.

Adjustment

A minor change or modification made to improve a system, process, or document.

Warranty Period

The specific time period during which a manufacturer or vendor is obligated to replace or repair defective parts of a product.