Exhibit 5.1 -Refer to Exhibit 5.1, Which Shows the Aggregate Demand and the Aggregate

Multiple Choice

Exhibit 5.1

-Refer to Exhibit 5.1, which shows the aggregate demand and supply curves for the United States. From the beginning of period 1 to the end of period 2, _____

A) real GDP decreased and then increased.
B) real GDP increased and then decreased.
C) real GDP fell from $10,000 to $6,000.
D) real GDP remained constant at $6,000.
E) the inflation rate fell from 4 percent to 2 percent.