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Exhibit 14A-6 Aggregate Demand and Supply Model

Question 25

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Exhibit 14A-6 Aggregate demand and supply model
Exhibit 14A-6 Aggregate demand and supply model -Beginning from long-run equilibrium at point E₁ in Exhibit 14A-6,the aggregate demand curve shifts to AD₂.The real GDP and price level (CPI) in short-run equilibrium will be: A) $10 billion and 200. B) $10 billion and 150. C) $10 billion and 100. D) $4 billion and 150.
-Beginning from long-run equilibrium at point E₁ in Exhibit 14A-6,the aggregate demand curve shifts to AD₂.The real GDP and price level (CPI) in short-run equilibrium will be:


A) $10 billion and 200.
B) $10 billion and 150.
C) $10 billion and 100.
D) $4 billion and 150.

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