Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₄ to AD₅,real GDP will:
A) not change, and the price level will rise from 120 to 170.
B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170.
C) not change, and the price level will rise from 140 to 170.
D) increase from $4.0 to $7.0, and the price level will not change.
E) not change, and the price level will rise from 100 to 170.

Question

Exhibit 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,if aggregate demand shifts from AD₄ to AD₅,real GDP will:
A) not change, and the price level will rise from 120 to 170. 
B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170. 
C) not change, and the price level will rise from 140 to 170. 
D) increase from $4.0 to $7.0, and the price level will not change. 
E) not change, and the price level will rise from 100 to 170.

Quizplus · Accepted Answer

The Answer of Exhibit 14-8 Aggregate demand and supply
 
-In Exhibit 14-8,if aggregate demand shifts from AD₄ to AD₅,real GDP will:
A) not change, and the price level will rise from 120 to 170. 
B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170. 
C) not change, and the price level will rise from 140 to 170. 
D) increase from $4.0 to $7.0, and the price level will not change. 
E) not change, and the price level will rise from 100 to 170.

Exhibit 14-8 Aggregate Demand and Supply