Exhibit 5-1
-In Exhibit 5-1,in period 1 the equilibrium GDP falls from 10,000 to 6,000 when aggregate demand falls from AD to AD'.

Name: Exhibit 5-1 -In Exhibit 5-1,in period 1 the equilibrium GDP falls from 10,000 to 6,000 when aggregate demand falls from AD to AD'.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Exhibit 5-1  
-In Exhibit 5-1,in period 1 the equilibrium GDP falls from 10,000 to 6,000 when aggregate demand falls from AD to AD'.

Quizplus · Accepted Answer

This can be inferred from the downward shift in the aggregate demand curve from AD to AD' in Exhibit 5-1, which leads to a decrease in equilibrium GDP from 10,000 to 6,000 in period 1.