-Refer to the above figure. Suppose the current aggregate demand is represented by AD₂. If aggregate demand falls to line AD₃, then A) the new equilibrium will be at j. B) the new equilibrium will be at k. C) the new equilibrium real Gross Domestic Product (GD P) will be x. D) a new price level will be established at a.

Question

Quizplus · Accepted Answer

The new equilibrium real Gross Domestic Product (GDP) will be x.When aggregate demand falls from AD2 to AD3, the equilibrium real GDP falls from y to x.

-Refer to the Above Figure