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Exhibit 14A-1 Aggregate Demand and Supply Model

Question 22

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Exhibit 14A-1 Aggregate demand and supply model
Exhibit 14A-1 Aggregate demand and supply model Beginning from long-run equilibrium at point E<sub>1</sub> in Exhibit 14A-1, the aggregate demand curve shifts to AD<sub>2</sub> . 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.
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.

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