Exhibit 14A-6 Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-6, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be: A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150.

Question

Quizplus · Accepted Answer

The Answer of Exhibit 14A-6 Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-6, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be: A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150.

Exhibit 14A-6 Aggregate Demand and Supply Model Beginning from Long-Run