Refer to the graph above. When output increases from Q 1 and the price level decreases from P 1, this change will:
a. Be caused by a shift in the aggregate supply curve from AS1 to AS2
b. Result in a movement along the aggregate demand curve from e3 to e1
c. Result in a movement along the aggregate demand curve from e1 to e2
d. Be caused by a shift in the aggregate supply curve from AS1 to AS3
Answer: d. Be caused by a shift in the aggregate supply curve from AS1 to AS3
Economics
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