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QUESTION

Refer to the above graph. Which combination would best explain a shift in real domestic output from Q 1 to Q 2 ?

Refer to the above graph. Which combination would best explain a shift in real domestic output from Q1 to Q2?

 A. Increases in long-run aggregate supply (ASLR1 to ASLR2), aggregate demand (AD1 to AD2), and short-run aggregate supply (AS1 to AS2)

B. Decreases in long-run aggregate supply (ASLR2 to ASLR1), aggregate demand (AD2 to AD1), and short-run aggregate supply (AS2 to AS1)

C. Increase in long-run aggregate supply (AS1 to AS2) and decrease in short-run aggregate supply (AS2 to AS1)

D. Increases in aggregate demand (AD1 to AD2) and decrease in aggregate supply (AS2 to AS1)

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