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Exhibit 14A-6  Aggregate Demand and Supply Model Beginning from Long-Run

Question 70

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Exhibit 14A-6  Aggregate demand and supply model Exhibit 14A-6  Aggregate demand and supply model Beginning from long-run equilibrium at point E<sub>1</sub> in Exhibit 14A-6, the aggregate demand curve shifts to AD<sub>2</sub>. The real GDP and price level (CPI) in short-run equilibrium will be: A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150. Beginning from long-run equilibrium at point E1 in Exhibit 14A-6, the aggregate demand curve shifts to AD2. The real GDP and price level (CPI) in short-run equilibrium will be:


A) $10 billion and 200.
B) $10 billion and 150.
C) $10 billion and 100.
D) $4 billion and 150.

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