Figure 15-3 -In Figure 15-3,if the Economy Is Initially at Equilibrium at at Equilibrium

question 2

Multiple Choice

Figure 15-3
-In Figure 15-3,if the economy is initially at equilibrium at point B,an unanticipated increase in aggregate demand from A D₁ to A D₂ would cause,in the short run,

• A)the price level to rise from P₂ to P₁,real GDP to increase from Q₂ to Q₁,and the rate of unemployment to decrease.
• B)the price level to move from P₂ to P₁,but real GDP would stay at Q₁.
• C)the price level to rise by some amount less than P₁ but greater than P₂,and the rate of unemployment would decrease.
• D)no change in either the price level or real GDP,but a decrease in unemployment.