Multiple Choice
Figure 12.2: 
-Using Figure 12.2,assume that Q2 is full employment and the economy is in equilibrium at point V.Ceteris paribus a shift in aggregate demand to AD2 will:
A) Result in equilibrium at point W.
B) Result in equilibrium at point Y.
C) Reduce the GDP gap but would not close it.
D) Cause an AD shortfall.
Correct Answer:
Verified
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