Multiple Choice
Use the figure below to answer the following questions.
Figure 28.2.3
-Refer to Figure 28.2.3. Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SAS₀ curve and the AD₀ curve. If the aggregate demand curve is expected to remain at AD₀ but shifts to AD₁, the new equilibrium real GDP is ________ and the new equilibrium price level is ________.
A) $380 billion; 125
B) $500 billion; 150
C) $500 billion; 100
D) $620 billion; 125
E) $500 billion; 125
Correct Answer:

Verified
Correct Answer:
Verified
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