Exhibit 14-2 Aggregate demand and supply

-In Exhibit 14-2,if aggregate demand shifts from AD₅ to AD₄,real GDP will:
A)not change and the price level will fall from 170 to 100.
B)not change and the price level will fall from 140 to 100.
C)fall from $8 to $6 and the price level will not change.
D)fall from $8 to $6 and the price level will fall from 140 to 120.
E)not change and the price level will fall from 170 to 140.

Question

Exhibit 14-2 Aggregate demand and supply
 
-In Exhibit 14-2,if aggregate demand shifts from AD₅ to AD₄,real GDP will:
A)not change and the price level will fall from 170 to 100. 
B)not change and the price level will fall from 140 to 100. 
C)fall from $8 to $6 and the price level will not change. 
D)fall from $8 to $6 and the price level will fall from 140 to 120. 
E)not change and the price level will fall from 170 to 140.

Quizplus · Accepted Answer

The Answer of Exhibit 14-2 Aggregate demand and supply
 
-In Exhibit 14-2,if aggregate demand shifts from AD₅ to AD₄,real GDP will:
A)not change and the price level will fall from 170 to 100. 
B)not change and the price level will fall from 140 to 100. 
C)fall from $8 to $6 and the price level will not change. 
D)fall from $8 to $6 and the price level will fall from 140 to 120. 
E)not change and the price level will fall from 170 to 140.

Exhibit 14-2 Aggregate Demand and Supply