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Figure 14.2

Question 2

Multiple Choice

Figure 14.2 Figure 14.2 -Using Figure 14.2,a shift in aggregate demand from AD<sub>4</sub> to AD<sub>5</sub> will cause,ceteris paribus: A) An increase in real output and an increase in the price level. B) An increase in real output but no change in the price level. C) An increase in the price level but no change in real output. D) A decrease in the price level but no change in real output.
-Using Figure 14.2,a shift in aggregate demand from AD4 to AD5 will cause,ceteris paribus:


A) An increase in real output and an increase in the price level.
B) An increase in real output but no change in the price level.
C) An increase in the price level but no change in real output.
D) A decrease in the price level but no change in real output.

Correct Answer:

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