Exhibit 10.7 -Refer to Exhibit 10.7, Which Shows the Equilibrium Price Level

Multiple Choice

Exhibit 10.7

-Refer to Exhibit 10.7, which shows the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. If prices are higher than expected, over the long run the economy moves from _____

A) Z to H.
B) Z to W.
C) H to Z.
D) W to Z.
E) W to H.