Refer to the above diagram. When AD1 shifts to AD2, real output:
A. increases from Q1 to Q2, while the price level stays the same.
B. stays the same, while the price level rises.
C. increases from Q1 to Q2, while the price level rises.
D. increases from Q1 to Q3, while the price level declines.
Answer: C
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A) A driver's license B) A land contract C) A passing score on a C.P.A. exam D) A successful election campaign E) All of the above.
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A. higher; greater B. higher; smaller C. lower; greater D. lower; smaller