Exhibit 14A-6  Aggregate Demand and Supply Model Beginning from Long-Run

question 70

Multiple Choice

Exhibit 14A-6  Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-6, 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.

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Definitions:

Subsurface Material

Materials found beneath the Earth's surface, including rocks, minerals, and soil.

Groundwater Velocity

The speed at which groundwater moves through an aquifer, influenced by the permeability of the rock and the hydraulic gradient.

Water Table

The upper surface of the zone of saturation where water pressure and atmospheric pressure are equal, beneath which soil and rock are saturated with water.

Groundwater Flow

The movement of water through the subsurface soil and rocks, primarily due to gravity and pressure differences.