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-The Figure Above Illustrates the Aggregate Demand, Short-Run Aggregate Supply

question 175

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  -The figure above illustrates the aggregate demand, short-run aggregate supply, and long-run aggregate supply in Lotus Land. The economy is currently at point D and the government increases its expenditure on goods and services. The economy will move to . The price level will_________ , and the change in real GDP will be_________ the increase in aggregate demand. A)  point B; remain constant; the same as B)  point D; rise; less than C)  point A; fall; less than D)  point C; rise; less than
-The figure above illustrates the aggregate demand, short-run aggregate supply, and long-run aggregate supply in Lotus Land. The economy is currently at point D and the government increases its expenditure on goods and services. The economy will move to . The price level will_________ , and the change in real GDP will be_________ the increase in aggregate demand.


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