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

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.

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