Use the following graph to answer this question. Price level (P) Line Y1 B Line Y2 Y decrease in aggregate demand. A Line X2 The shift of line X1 to line X2 represents a(n) decrease in short-run aggregate supply. increase in short-run aggregate supply. increase in aggregate demand. increase in long-run aggregate supply. Line X1 Real GDP (Y)
Use the following graph to answer this question. Price level (P) Line Y1 B Line Y2 Y decrease in aggregate demand. A Line X2 The shift of line X1 to line X2 represents a(n) decrease in short-run aggregate supply. increase in short-run aggregate supply. increase in aggregate demand. increase in long-run aggregate supply. Line X1 Real GDP (Y)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**Use the following graph to answer this question.**
[Graph Description:]
- The graph has the price level (P) on the vertical axis and Real GDP (Y) on the horizontal axis.
- There are four lines in the graph: two vertical lines (Line Y1 and Line Y2) and two other lines (Line X1 and Line X2).
- Line X1 and Line X2 are downward sloping lines, where Line X1 shifts to the right to become Line X2.
- Point A is on Line X2 at a higher level of Real GDP (Y') and lower level of Price (P) compared to Point B which is on Line X1 at a lower level of Real GDP (Y'') and higher level of Price (P).
**Question:**
The shift of line X1 to line X2 represents a(n)
- ○ decrease in short-run aggregate supply.
- ○ increase in short-run aggregate supply.
- ○ increase in aggregate demand.
- ○ increase in long-run aggregate supply.
- ○ decrease in aggregate demand.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9098e93f-58c3-4fbc-8e45-6d7188b73c6d%2Fedfc6a54-457a-4624-bda5-d7d93e82f47a%2F4jchmwa_processed.png&w=3840&q=75)
Transcribed Image Text:**Use the following graph to answer this question.**
[Graph Description:]
- The graph has the price level (P) on the vertical axis and Real GDP (Y) on the horizontal axis.
- There are four lines in the graph: two vertical lines (Line Y1 and Line Y2) and two other lines (Line X1 and Line X2).
- Line X1 and Line X2 are downward sloping lines, where Line X1 shifts to the right to become Line X2.
- Point A is on Line X2 at a higher level of Real GDP (Y') and lower level of Price (P) compared to Point B which is on Line X1 at a lower level of Real GDP (Y'') and higher level of Price (P).
**Question:**
The shift of line X1 to line X2 represents a(n)
- ○ decrease in short-run aggregate supply.
- ○ increase in short-run aggregate supply.
- ○ increase in aggregate demand.
- ○ increase in long-run aggregate supply.
- ○ decrease in aggregate demand.
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