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

question 67

Multiple Choice

Figure 10-18 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.

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Definitions:

Investment Purposes

Objectives behind allocating resources, including money, into assets expected to yield financial returns or appreciate in value over time.

Worthless

An adjective describing something that has no monetary value, usefulness, or importance.

Personal Computers

Electronic computing devices designed for individual use, often consisting of a monitor, keyboard, mouse, and a processing unit.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.