Refer to the above graph.Assume that the economy is at equilibrium at AD₁ and AS₁ and then is hit with both demand-pull and cost-push inflation.If this occurs, then, in the short run: A)AD₁ will shift to AD₂, AS₂ will shift to AS₃, the price level will be at P₂, and output will be at Q₂. B)AS₁ will shift to AS₃, AD₂ will shift to AD₁, the price level will be at P₃, and output will be at Q₃. C)AD₁ will shift to AD₂, AS₁ will shift to AS₂, the price level will be at P₂, and output will be at Q₂. D)AD₁ will shift to AD₂, AS₁ will shift to AS₂, the price level will be at P₃, and output will be at Q₁.

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The Answer of Refer to the above graph.Assume that the economy is at equilibrium at AD₁ and AS₁ and then is hit with both demand-pull and cost-push inflation.If this occurs, then, in the short run: A)AD₁ will shift to AD₂, AS₂ will shift to AS₃, the price level will be at P₂, and output will be at Q₂. B)AS₁ will shift to AS₃, AD₂ will shift to AD₁, the price level will be at P₃, and output will be at Q₃. C)AD₁ will shift to AD₂, AS₁ will shift to AS₂, the price level will be at P₂, and output will be at Q₂. D)AD₁ will shift to AD₂, AS₁ will shift to AS₂, the price level will be at P₃, and output will be at Q₁.

Refer to the Above Graph