Exhibit 14A-1  Aggregate Demand and Supply Model Given the Shift

question 1

Multiple Choice

Exhibit 14A-1  Aggregate demand and supply model Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-1, the real GDP and price level (CPI) in long-run equilibrium will be:

• A) $8 billion and 150.
• B) $12 billion and 200.
• C) $8 billion and 250.
• D) $8 billion and 200.

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