Exhibit 14-2 Aggregate demand and supply

-In Exhibit 14-2,if aggregate demand shifts from AD₁ to AD₃,real GDP will:
A)increase from $3 to $4 and the price level will increase from 100 to 140.
B)increase from $3 to $7 and the price level will increase from 100 to 140.
C)increase from $3 to $4 and the price level does not change.
D)increase from $3 to $7 and the price level will increase from 100 to 120.
E)not change and the price level will increase from 100 to 140.

Question

Exhibit 14-2 Aggregate demand and supply
 
-In Exhibit 14-2,if aggregate demand shifts from AD₁ to AD₃,real GDP will:
A)increase from $3 to $4 and the price level will increase from 100 to 140. 
B)increase from $3 to $7 and the price level will increase from 100 to 140. 
C)increase from $3 to $4 and the price level does not change. 
D)increase from $3 to $7 and the price level will increase from 100 to 120. 
E)not change and the price level will increase from 100 to 140.

Quizplus · Accepted Answer

The Answer of Exhibit 14-2 Aggregate demand and supply
 
-In Exhibit 14-2,if aggregate demand shifts from AD₁ to AD₃,real GDP will:
A)increase from $3 to $4 and the price level will increase from 100 to 140. 
B)increase from $3 to $7 and the price level will increase from 100 to 140. 
C)increase from $3 to $4 and the price level does not change. 
D)increase from $3 to $7 and the price level will increase from 100 to 120. 
E)not change and the price level will increase from 100 to 140.

Exhibit 14-2 Aggregate Demand and Supply