-In the above figure AD₁ and AS₁ represent the original aggregate supply and demand curves and AD₂ and AS₂ show the new aggregate demand and supply curves.At the original equilibrium price and quantity,this economy is experiencing:

Question

-In the above figure AD<sub>1</sub> and AS<sub>1</sub> represent the original aggregate supply and demand curves and AD<sub>2</sub> and AS<sub>2</sub> show the new aggregate demand and supply curves.At the original equilibrium price and quantity,this economy is experiencing: A) inflation. B) economic growth. C) full employment. D) less than full-capacity output.

Quizplus · Accepted Answer

The shift from AD1 to AD2 and AS1 to AS2 suggests a change in equilibrium, indicating that at the original equilibrium, the economy was producing less than full-capacity output.

-In the Above Figure AD1 and AS1 Represent the Original

-In the Above Figure AD₁ and AS₁ Represent the Original