Beginning from Long-Run Equilibrium at Point E₁ in Figure 10-18

question 4

Multiple Choice

Beginning from long-run equilibrium at point E₁ in Figure 10-18, 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.

---

Definitions:

Obama

Barack Obama, the 44th President of the United States, served from 2009 to 2017, and is noted for being the first African American to hold the office.

Commander-in-Chief

A term used to denote the supreme authority of an armed forces leader, often referring to the president or top military leader of a sovereign state.

Mass Passion

Intense, widespread emotional response from the general public towards a particular issue or event.