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

question 13

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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