Multiple Choice
Use the figure below to answer the following questions.
Figure 12.2.3
-Refer to Figure 12.2.3.Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SAS0 curve and the AD0 curve.If the aggregate demand curve is correctly expected to shift to AD1, new equilibrium real GDP is _______ and the new equilibrium price level is _______.
A) $500 billion; 150
B) $620 billion; 125
C) $380 billion; 125
D) $500 billion; 100
E) $500 billion; 125
Correct Answer:

Verified
Correct Answer:
Verified
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