Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₂,
A) real GDP will increase from $3.0 to $7.0, and the price level will remain the same.
B) real GDP will increase from $3.0 to $4.0, and the price level will remain the same.
C) real GDP and the price level will both remain the same.
D) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.

Question

Exhibit 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₂,
A) real GDP will increase from $3.0 to $7.0, and the price level will remain the same. 
B) real GDP will increase from $3.0 to $4.0, and the price level will remain the same. 
C) real GDP and the price level will both remain the same. 
D) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.

Quizplus · Accepted Answer

The Answer of Exhibit 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₂,
A) real GDP will increase from $3.0 to $7.0, and the price level will remain the same. 
B) real GDP will increase from $3.0 to $4.0, and the price level will remain the same. 
C) real GDP and the price level will both remain the same. 
D) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.

Exhibit 14-8 Aggregate Demand and Supply