Exhibit 14A-6  Aggregate Demand and Supply Model Given the Shift

question 67

Multiple Choice

Exhibit 14A-6  Aggregate demand and supply model Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-6, the real GDP and price level (CPI) in long-run equilibrium will be:

• A) $10 billion and 200.
• B) $4 billion and 150.
• C) $10 billion and 150.
• D) $10 billion and 100.

---

Definitions:

Incentivize

To provide motivation or encouragement through rewards or benefits, aiming to promote certain behaviors or actions.

Insurable Interest

A principle that requires an individual to have a stake in the safety or preservation of the insured object against loss or damage.

Financial Benefit

An economic advantage or gain received, such as income, dividends, or appreciation in asset value.

Fair Market Value

Fair market value is the price at which a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts, would engage in a transaction.