Aggregate demand and aggregate supply

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Question 60
Easy

The diagram below shows a shift in aggregate demand from AD1\text{AD}_1AD1​ to AD2\text{AD}_2AD2​.

AD-AS diagram showing a shift from AD1 to AD2

What is the short-run impact of this shift on the economy?

Lower price level and lower real output

Higher price level and lower real output

Lower price level and higher real output

Higher price level and higher real output

Aggregate demand and aggregate supply Questions

  1. A Level
  2. /Economics
  3. /Aggregate demand and aggregate supply