Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₃,
A) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
B) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140.
C) real GDP will increase from $3.0 to $4.0, and the price level does not change.
D) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.
E) real GDP will not change 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 AD₃,
A) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. 
B) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. 
C) real GDP will increase from $3.0 to $4.0, and the price level does not change. 
D) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120. 
E) real GDP will not change 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 AD₃,
A) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. 
B) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. 
C) real GDP will increase from $3.0 to $4.0, and the price level does not change. 
D) real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120. 
E) real GDP will not change and the price level will increase from 100 to 140.

Exhibit 14-8 Aggregate Demand and Supply