Multiple Choice
Exhibit 14-2 Aggregate demand and supply
-In Exhibit 14-2,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 to $6 and the price level will not change.
D) fall from $8 to $6 and the price level will fall from 140 to 120.
E) not change and the price level will fall from 170 to 140.
Correct Answer:
Verified
Correct Answer:
Verified
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