Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₂ to AD₁, real GDP will: A)fall from $4.0 to $3.0, and the price level will fall from 120 to 100. B)fall from $4.0 to $3.0, and the price level will not change. C)fall from $7.0 to $4.0, and the price level will not change. D)not change, and the price level will not change. E)fall from $4.0 to $3.0, and the price level will fall from 170 to 100.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₂ to AD₁, real GDP will: A)fall from $4.0 to $3.0, and the price level will fall from 120 to 100. B)fall from $4.0 to $3.0, and the price level will not change. C)fall from $7.0 to $4.0, and the price level will not change. D)not change, and the price level will not change. E)fall from $4.0 to $3.0, and the price level will fall from 170 to 100.

Exhibit 10-8 Aggregate Demand and Supply in Exhibit 10-8