-In the Above Figure, If a Is the Initial Equilibrium

question 180

Multiple Choice

-In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD₁ to AD₂, then

• A)the new short-run equilibrium will be at point B.
• B)the new long-run equilibrium will be at point B.
• C)the new short-run equilibrium will be at point D.
• D)real Gross Domestic Product (GD
• P)per year will fall below Y₁.

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