-Refer to the Above Figure

question 138

Multiple Choice

-Refer to the above figure. Suppose the current aggregate demand is represented by AD₂. If aggregate demand falls to line AD₃, then

• A) the new equilibrium will be at j.
• B) the new equilibrium will be at k.
• C) the new equilibrium real Gross Domestic Product (GD
• P) will be x.
• D) a new price level will be established at a.

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