-Refer to the above diagram.When AD₁ shifts to AD₂,then at P₁Q₃ output demanded will: A) equal output supplied. B) exceed output supplied. C) be less than output supplied. D) be at stable full-employment GDP.

Question

Quizplus · Accepted Answer

When AD1 shifts to AD2, the aggregate demand increases, leading to a higher quantity of output demanded at the same price level P1. At P1Q3, the output demanded will exceed the output supplied, creating a shortage.

-Refer to the Above Diagram