Beginning from Long-Run Equilibrium at Point E₁ in Exhibit 14A-1,the

question 32

Multiple Choice

Beginning from long-run equilibrium at point E₁ in Exhibit 14A-1,the aggregate demand curve shifts to AD₂ .The real GDP and price level (CPI) in short-run equilibrium will be:

• A) $12 billion and 200.
• B) $8 billion and 250.
• C) $8 billion and 150.
• D) $12 billion and 250.

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Definitions:

Supply Chain Surplus

The difference between the value generated by the supply chain's final product to the end customer and the costs of the supply chain.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Cerebral Cortex

The outer layer of the brain, responsible for complex functions including thought, memory, and voluntary movement.

Motor Speech

The process that involves the planning and execution of movements required for the production of speech.