FIGURE 23-3 Refer to Figure 23-3

question 61

Multiple Choice

FIGURE 23-3 Refer to Figure 23-3.Suppose the price level in Economy A is above .Which of the following statements describes what would occur?

• A)The AD curve would shift to the right until macro equilibrium is reached.
• B)Real GDP would be below its equilibrium level which would put downward pressure on the price level until it reaches macro equilibrium at .
• C)The amount of output supplied by firms is greater than total desired expenditure; excess supply will put downward pressure on the price level until it reaches macro equilibrium at .
• D)Real GDP would be below its equilibrium level which would put upward pressure on the price level until it reaches macro equilibrium.
• E)The AS curve would shift to the left until macro equilibrium is reached.