Narrbegin Exhibit 14.2 Aggregate demand and supply -In Exhibit 14.2, if aggregate demand shifts from AD₃ to AD₄, real GDP will: A) rise from $7 to $8 and the price level will rise from 120 to 140. B) rise from $7 to $8 and the price level will rise from 120 to 170. C) rise from $7 to $8 and the price level will rise from 100 to 140. D) not change and the price level will rise from 120 to 140.

Question

Quizplus · Accepted Answer

An increase in aggregate demand typically results in an increase in both real GDP and the price level, as described in option A.