Using Figure 1 Above, If the Aggregate Demand Curve Shifts

question 153

Multiple Choice

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

• A) P1 and Y2.
• B) P3 and Y1.
• C) P2 and Y3.
• D) P2 and Y2.

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Definitions:

Continental Collision

The process by which two continental plates collide, leading to the formation of mountains and other geological features.

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, commonly found at plate boundaries and associated with significant earthquake activity.

Mid-ocean Ridge

An underwater mountain range formed by plate tectonics, where new oceanic crust is created through volcanic activity.

Linear Island Chain

A sequential assembly of islands that form in a straight line, often the result of volcanic activity on the seafloor.