The Diagram Below Shows an AD/AS Model for a Hypothetical

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.
FIGURE 24-3
-Refer to Figure 24-3. Following the negative AD shock shown in the diagram (from AD1 to AD2) , the adjustment process will take the economy to a long-run equilibrium where the price level is ________ and real GDP is ________.

A) 110; 1000
B) 60; 1000
C) 90; 900
D) 110; 800
E) 90; 1250