Exhibit 14-8 Aggregate Demand and Supply

question 85

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₄ to AD₅,real GDP will:

• A) not change, and the price level will rise from 120 to 170.
• B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170.
• C) not change, and the price level will rise from 140 to 170.
• D) increase from $4.0 to $7.0, and the price level will not change.
• E) not change, and the price level will rise from 100 to 170.

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