Figure 10-18 Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150.

Question

Quizplus · Accepted Answer

The Answer of Figure 10-18 Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150.

Figure 10-18 Beginning from Long-Run Equilibrium at Point E1

Figure 10-18 Beginning from Long-Run Equilibrium at Point E₁