Use the following figure to answer the next question. If the aggregate supply curve shifted from AS0 to AS1 and the aggregate demand curve remains at AD0, we could say that Multiple Choice aggregate supply has decreased, equilibrium output has decreased, and unemployment has increased. aggregate supply has increased, equilibrium output has decreased, and unemployment has increased. an increase in the amount of output supplied has occurred. aggregate supply has increased and the price level has risen to G. AS,AS,HFEAD,AD1А всReal Domestic OutputPrice Level

Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…

Answered: If the aggregate supply curve shifted…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Use the following figure to answer the next question.

If the aggregate supply curve shifted from AS₀ to AS₁ and the aggregate demand curve remains at AD₀, we could say that

Multiple Choice

aggregate supply has decreased, equilibrium output has decreased, and unemployment has increased.
aggregate supply has increased, equilibrium output has decreased, and unemployment has increased.
an increase in the amount of output supplied has occurred.
aggregate supply has increased and the price level has risen to G.

AS,
AS,
H
F
E
AD,
AD1
А вс
Real Domestic Output
Price Level

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