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-The Figure Above Illustrates the Aggregate Demand, Short- Run Aggregate

Question 139

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-The figure above illustrates the aggregate demand, short- run aggregate supply, and long- run aggregate supply in Lotus Land. The economy is currently at point D and the government increases its expenditure on goods and services. The economy will move to . The price level will , and the change in real GDP will be the increase in aggregate demand. A) point A; fall; less than B) point B; remain constant; the same as C) point D; rise; less than D) point C; rise; less than
-The figure above illustrates the aggregate demand, short- run aggregate supply, and long- run aggregate supply in Lotus Land. The economy is currently at point D and the government increases its expenditure on goods and services. The economy will move to . The price level will
, and the change in real GDP will be the increase in aggregate demand.


A) point A; fall; less than
B) point B; remain constant; the same as
C) point D; rise; less than
D) point C; rise; less than

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