Multiple Choice
Exhibit 14-2 Aggregate demand and supply
-In Exhibit 14-2,if aggregate demand shifts from AD₂ to AD₁,real GDP will:
A) not change and the price level will not change.
B) fall from $7 to $4 and the price level will not change.
C) fall from $4 to $3 and the price level will not change.
D) fall from $4 to $3 and the price level will fall from 120 to 100.
E) fall from $4 to $3 and the price level will fall from 170 to 100.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Along the Keynesian range of the aggregate
Q57: The net export effect is caused by:<br>A)
Q76: According to the Keynesian model:<br>A) the equilibrium
Q82: A decrease in aggregate supply will tend
Q82: The pre-Keynesian or classical economic theory predicted
Q87: The aggregate demand curve:<br>A)shows the level of
Q88: Aggregate supply increases when:<br>A)wage rates decrease, while
Q97: Other factors held constant, an increase in
Q110: The interest rate effect predicts that higher
Q121: Marginal propensity to consume:<br>A) is the change