Exhibit 5.2

-Refer to Exhibit 5.2 which shows the aggregate demand and supply curves for the United States. As the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1 _____
A) increases from 3 to 4.
B) decreases from 4 to 3.
C) decreases from 4 to 1.
D) increases from 1 to 4.
E) decreases from 4 to 2.

Question

Exhibit 5.2
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-Refer to Exhibit 5.2 which shows the aggregate demand and supply curves for the United States. As the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1 _____
A) increases from 3 to 4. 
B) decreases from 4 to 3. 
C) decreases from 4 to 1. 
D) increases from 1 to 4. 
E) decreases from 4 to 2.

Quizplus · Accepted Answer

The Answer of Exhibit 5.2
​

-Refer to Exhibit 5.2 which shows the aggregate demand and supply curves for the United States. As the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1 _____
A) increases from 3 to 4. 
B) decreases from 4 to 3. 
C) decreases from 4 to 1. 
D) increases from 1 to 4. 
E) decreases from 4 to 2.

Exhibit 5.2 ​

Exhibit 5.2