Figure 5-2

-In Figure 5-2, if the aggregate demand curve shifts outward over time, the economy will
A)experience inflation.
B)see a sustained decrease in the price level.
C)experience a significant decrease in unemployment.
D)experience economic recession.

Question

Figure 5-2
​ 
-In Figure 5-2, if the aggregate demand curve shifts outward over time, the economy will
A)experience inflation. 
B)see a sustained decrease in the price level. 
C)experience a significant decrease in unemployment. 
D)experience economic recession.

Quizplus · Accepted Answer

An outward shift in the aggregate demand curve indicates an increase in demand for goods and services, which can lead to higher prices and inflationary pressures in the economy.

Figure 5-2 ​

Figure 5-2