Referring to the diagram below, which of the following is a true statement?
Prices
Q1 Q2
SRAS
AD1
AD2
Output
The increase in supply (Q1 to Q2) may come about because of increased money supply.
The increase in supply (Q1 to Q2) may result from decreased government spending.
The increase in output (Q1 to Q2) may come about because of lower levels of taxation.
O The increase in output (Q1 to Q2) may result from increased levels of taxation.
