The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment. This situation can be best illustrated in the figure above as a:
Refer to the figure above
A. Shift from AD2 to AD1
B. Shift from AD1 to AD2
C. Movement along AD1 from Q4 to Q1
D. Movement along AD2 from Q2 to Q3
B. Shift from AD1 to AD2
Economics