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I would need help with this question from a mock test. The figure shows a downward shift of the aggregate demand curve, reducing the level

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I would need help with this question from a mock test.

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The figure shows a downward shift of the aggregate demand curve, reducing the level of output from A to Z. Suppose that we begin again at A and that this is a full-employment level of output. An increase in aggregate demand in these circumstances will most likely cause: Y - AD on 45-degree line 3.75 AD -C +CY +1 Aggregate demand, AD 15 AD =C +cy+l' Set 15 E Decrease in investment of #1.5 bnc investment falls from I to I' 15 After multiplier process, output has fallen by 63.75 bn multiplier is 3.75/1.5 = 2.5 45 Output (income), Y Select one correct answer O A rise in the general level of prices. O An increase in output. O An increase in employment. O A fall in wages

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