The following question are based on the following diagram, in which existing aggregate supply and demand curves are AS₀ and AD₀, respectively:

-As a result of these strategic input price increases,the price level
A) rises to ₀P₂ and real output increases to ₀Q₂.
B) increases to ₀P₃ and real output remains unchanged.
C) remains unchanged and real output increases to ₀Q₃.
D) remains unchanged and real output remains unchanged.
E) rises to ₀P₁ and real output declines to ₀Q₁.

Question

The following question are based on the following diagram, in which existing aggregate supply and demand curves are AS₀ and AD₀, respectively:
 
-As a result of these strategic input price increases,the price level
A) rises to ₀P₂ and real output increases to ₀Q₂. 
B) increases to ₀P₃ and real output remains unchanged. 
C) remains unchanged and real output increases to ₀Q₃. 
D) remains unchanged and real output remains unchanged. 
E) rises to ₀P₁ and real output declines to ₀Q₁.

Quizplus · Accepted Answer

The Answer of The following question are based on the following diagram, in which existing aggregate supply and demand curves are AS₀ and AD₀, respectively:
 
-As a result of these strategic input price increases,the price level
A) rises to ₀P₂ and real output increases to ₀Q₂. 
B) increases to ₀P₃ and real output remains unchanged. 
C) remains unchanged and real output increases to ₀Q₃. 
D) remains unchanged and real output remains unchanged. 
E) rises to ₀P₁ and real output declines to ₀Q₁.

The Following Question Are Based on the Following Diagram, in Which