Use the Figure Below to Answer the Following Questions

question 28

Multiple Choice

Use the figure below to answer the following questions.

Figure 28.1.3
-Refer to Figure 28.1.3.Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SAS? curve and the AD? curve.If the aggregate demand curve is expected to remain at AD? but shifts to AD?,the new equilibrium real GDP is ________ and the new equilibrium price level is ________.

• A)$380 billion;125
• B)$500 billion;150
• C)$500 billion;100
• D)$620 billion;125
• E)$500 billion;125

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Definitions:

Whiplash

A neck injury due to forceful, rapid back-and-forth movement of the neck, like the cracking of a whip, often occurring during rear-end car accidents.

Hyperextension

An excessive extension of a limb or joint beyond its normal range of motion, potentially causing injury.

Intervertebral Disk

A fibrocartilaginous cushion serving as a shock absorber between adjacent vertebrae in the spinal column.

Fibrocartilage

A type of tough, dense tissue that has both fibrous and cartilaginous qualities, commonly found in intervertebral discs and joint capsules.