Exhibit 14A-1 Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-1, the aggregate demand curve shifts to AD₂ . The real GDP and price level (CPI) in short-run equilibrium will be: A) $12 billion and 200. B) $8 billion and 250. C) $8 billion and 150. D) $12 billion and 250.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 14A-1 Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-1, the aggregate demand curve shifts to AD₂ . The real GDP and price level (CPI) in short-run equilibrium will be: A) $12 billion and 200. B) $8 billion and 250. C) $8 billion and 150. D) $12 billion and 250.

Exhibit 14A-1 Aggregate Demand and Supply Model Beginning from Long-Run