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Use the Following Graph to Answer the Following Questions

Question 124

Multiple Choice

Use the following graph to answer the following questions.
Use the following graph to answer the following questions.    -In the aggregate demand-aggregate supply model shown,if point A occurs chronologically before point B,which situation would the figure accurately represent? A)  Aggregate supply,long-run aggregate demand,and the price level have all decreased. B)  Aggregate supply and long-run aggregate demand have decreased,while the price level has increased. C)  Aggregate demand and long-run aggregate supply have increased,with no change in price level. D)  Aggregate demand and long-run aggregate supply have decreased,with no change in price level. E)  Aggregate demand,long-run aggregate supply,and price level have all decreased.
-In the aggregate demand-aggregate supply model shown,if point A occurs chronologically before point B,which situation would the figure accurately represent?


A) Aggregate supply,long-run aggregate demand,and the price level have all decreased.
B) Aggregate supply and long-run aggregate demand have decreased,while the price level has increased.
C) Aggregate demand and long-run aggregate supply have increased,with no change in price level.
D) Aggregate demand and long-run aggregate supply have decreased,with no change in price level.
E) Aggregate demand,long-run aggregate supply,and price level have all decreased.

Correct Answer:

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