Exhibit 10-8 Aggregate Demand and Supply in Exhibit 10-8

Multiple Choice

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₅ to AD₄, real GDP will:

A) not change, and the price level will fall from 170 to 100.
B) not change, and the price level will fall from 140 to 100.
C) fall from $8.0 to $6.0, and the price level will not change.
D) fall from $8.0 to $6.0, and the price level will fall from 140 to 120.
E) not change, and the price level will fall from 170 to 140.