Exhibit 14-2 Aggregate Demand and Supply

question 37

Multiple Choice

Exhibit 14-2 Aggregate demand and supply

-In Exhibit 14-2,if aggregate demand shifts from AD₅ to AD₄,real GDP will:

• A)not change and the price level will fall from 170 to 100.
• B)not change and the price level will fall from 140 to 100.
• C)fall from $8 to $6 and the price level will not change.
• D)fall from $8 to $6 and the price level will fall from 140 to 120.
• E)not change and the price level will fall from 170 to 140.

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