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Exhibit 10-8 Aggregate Demand and Supply

Question 75

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Exhibit 10-8 Aggregate demand and supply
Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD<sub>1</sub> to AD<sub>3</sub>, A) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. B) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. C) real GDP will increase from $3.0 to $4.0, and the price level does not change. D) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.
In Exhibit 10-8, if aggregate demand shifts from AD1 to AD3,


A) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
B) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140.
C) real GDP will increase from $3.0 to $4.0, and the price level does not change.
D) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.

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