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Refer to Figure 11

Question 138

Multiple Choice

Refer to Figure 11.3.Assume aggregate demand is represented by AD<sub>1</sub> and full-employment output is $5.6 trillion.If aggregate demand decreases by the amount of the GDP gap,equilibrium will occur at A) Point a. B) Point b. C) Point c. D) Point D.Equilibrium occurs where the new aggregate demand AD<sub>2</sub> and AS intersect,at point c. Refer to Figure 11.3.Assume aggregate demand is represented by AD1 and full-employment output is $5.6 trillion.If aggregate demand decreases by the amount of the GDP gap,equilibrium will occur at


A) Point a.
B) Point b.
C) Point c.
D) Point D.Equilibrium occurs where the new aggregate demand AD2 and AS intersect,at point c.

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