Using Figure 1 Above, If the Aggregate Demand Curve Shifts

question 77

Multiple Choice

Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

• A) P5 and Y1.
• B) P5 and Y2.
• C) P4 and Y1.
• D) P4 and Y2.

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Definitions:

Reasonably Possible

A term used in accounting and law to indicate that a future event or condition has a chance of occurring.

Liability

A company's financial debt or obligations that arise during the course of its business operations.

Probable Loss

An estimated loss from a contingent liability that is likely to occur and can be reasonably estimated.

Reasonably Possible

Describes a level of likelihood that something might occur, under consideration in areas like assessments of contingent liabilities.