Exhibit 14A-6 Aggregate Demand and Supply Model

question 25

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:

False Consensus

A general tendency to assume that other people share our own attitudes, opinions, and preferences.

Candidate's Platform

A formal set of principal goals which are supported by a political candidate or party, in order to appeal to the general public for the purpose of having said peoples’ support in votes.

Shocked

A sudden, intense surprise or disturbance of the mind or emotions, often caused by an unexpected event.

False Consensus

The tendency to overestimate how much others share our beliefs and behaviors.