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The Figure Given Below Represents the Equilibrium Real GDP and Price

question 41

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The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3 The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3   In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation) ? A) AS<sub>1 </sub>to AS<sub>2</sub> B) AD<sub>1 </sub>to AD<sub>2</sub> C) AD<sub>2 </sub>to AD<sub>1</sub> D) AD<sub>2</sub> toAD<sub>3</sub> E) AS<sub>1 </sub>to AS<sub>3</sub> In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation) ?


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