Refer to the above diagram. When output decreases from Q1 and the price level increases from P1, then this change will:
A. be caused by a shift in the aggregate supply curve from AS1 to AS3.
B. result in a movement along the aggregate demand curve from e2 to e1.
C. be caused by a shift in the aggregate supply curve from AS2 to AS1.
D. result in a movement along the aggregate demand curve from e1 to e2.
Answer: D
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