Exhibit 10-6
-According to the graph in Exhibit 10-6, if the price level decreases, the new equilibrium level of real GDP must be
A)less than $20
B)less than $100
C)unchanged
D)greater than $100
E)greater than $200

Question

Exhibit 10-6 
-According to the graph in Exhibit 10-6, if the price level decreases, the new equilibrium level of real GDP must be
A)less than $20 
B)less than $100 
C)unchanged 
D)greater than $100 
E)greater than $200

Quizplus · Accepted Answer

According to the graph, a decrease in the price level will shift the aggregate demand curve to the right, causing an increase in the equilibrium level of real GDP. The new equilibrium level of real GDP will be greater than $100. Therefore, the correct choice is D, greater than $100.

Exhibit 10-6 -According to the Graph in Exhibit 10-6, If the Price