Use the Figure Below to Answer the Following Questions

question 25

Multiple Choice

Use the figure below to answer the following questions.

Figure 28.2.3
-Refer to Figure 28.2.3. Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SAS₀ curve and the AD₀ curve. If the aggregate demand curve is correctly expected to shift to AD₁, new equilibrium real GDP is ________ and the new equilibrium price level is ________.

• A)$380 billion; 125
• B)$500 billion; 150
• C)$500 billion; 100
• D)$620 billion; 125
• E)$500 billion; 125

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Definitions:

Circular

Describing reasoning or argument that is logically flawed because its conclusion is assumed in its premises.

Listener

An individual who actively pays attention to and processes information that is being communicated by others.

Speaker

An individual who gives a speech or someone who speaks a particular language.

Premises

Statements or propositions in an argument that provide support for the conclusion.