In the graph, the initially the aggregate supply curve is SAS0 and the aggregate demand curve is AD0.

Some events change aggregate demand from AD0 to AD1. Describe two events that could have created this change in aggregate demand.

What is the equilibrium after aggregate demand changed?

If potential GDP is unchanged, the economy is at what type of macroeconomic equilibrium?

Some events that could have changed aggregate demand from AD0 to AD1 are __.

A.

or

B.

or

C.

or

D.

or

Following the change in aggregate demand, the new equilibrium is at __.

A.

point A

B.

point B

C.

point C

D.

point D

If potential GDP is unchanged, the economy has moved to ___ equilibrium.

A.

an above full-employment

B.

a below full-employment

C.

a full-employment