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The Figure Below Shows the Aggregate Demand and Supply Curves

Question 4

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that from the beginning of period 1 to the end of period 2:
The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that from the beginning of period 1 to the end of period 2:   A) real GDP decreased and then increased. B) real GDP increased and then decreased. C) real GDP fell from $10,000 to $6,000. D) real GDP rose from $6,000 to $10,000. E) the inflation rate fell from 4 percent to 1 percent.


A) real GDP decreased and then increased.
B) real GDP increased and then decreased.
C) real GDP fell from $10,000 to $6,000.
D) real GDP rose from $6,000 to $10,000.
E) the inflation rate fell from 4 percent to 1 percent.

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