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 AD₄ to AD₅, real GDP will:

A) not change, and the price level will rise from 120 to 170.
B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170.
C) not change, and the price level will rise from 140 to 170.
D) increase from $4.0 to $7.0, and the price level will not change.
E) not change, and the price level will rise from 100 to 170.