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-In the Above Figure, If a Is the Initial Equilibrium

Question 180

Multiple Choice

-In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD₁ to AD₂, then A) the new short-run equilibrium will be at point B. B) the new long-run equilibrium will be at point B. C) the new short-run equilibrium will be at point D. D) real Gross Domestic Product (GDP) per year will fall below Y₁.
-In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD₁ to AD₂, then


A) the new short-run equilibrium will be at point B.
B) the new long-run equilibrium will be at point B.
C) the new short-run equilibrium will be at point D.
D) real Gross Domestic Product (GDP) per year will fall below Y₁.

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