Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.


Refer to Figure 26.8. This economy cannot continue to produce
Y
1 (or at point
B) because
◦ the price of raw material and wages will increase shifting the aggregate supply curve to
AS1.
◦ the price of inputs will decrease, shifting the aggregate supply curve to
AS2.
◦ the price of raw material will increase, shifting the aggregate demand curve to
AD2.
◦ All of these.