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 expected to remain at AD0 but shifts to AD1, the new equilibrium real GDP is _______ and the new equilibrium price level is _______.
A) $500 billion; 100
B) $380 billion; 125
C) $500 billion; 125
D) $620 billion; 125
E) $500 billion; 150
Correct Answer:

Verified
Correct Answer:
Verified
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