Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,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 $8.0 to $6.0, and the price level will not change.
D) fall from $8.0 to $6.0, 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 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,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 $8.0 to $6.0, and the price level will not change. 
D) fall from $8.0 to $6.0, 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 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,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 $8.0 to $6.0, and the price level will not change. 
D) fall from $8.0 to $6.0, and the price level will fall from 140 to 120. 
E) not change, and the price level will fall from 170 to 140.

Exhibit 14-8 Aggregate Demand and Supply