The change in AD is the same size as the change in equilibrium GDP if prices are held constant.

Question

Quizplus · Accepted Answer

This is because the AD curve represents the total spending in the economy at different price levels, and equilibrium GDP is the level of output where total spending (AD) equals total production (GDP). If prices are held constant, then any change in AD will result in an equal change in equilibrium GDP because there is no change in the price level to affect the quantity of goods and services demanded or supplied.

The Change in AD Is the Same Size as the Change