The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.
FIGURE 24-3
-Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from AD1 to AD2.At the new short-run equilibrium,the price level is ________ and real GDP is ________.
A)90; 900
B)110; 800
C)60; 1000
D)60; 700
E)90; 1250

Question

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.
  FIGURE 24-3
-Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from AD1 to AD2.At the new short-run equilibrium,the price level is ________ and real GDP is ________.
A)90; 900 
B)110; 800 
C)60; 1000 
D)60; 700 
E)90; 1250

Quizplus · Accepted Answer

The Answer of The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.
  FIGURE 24-3
-Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from AD1 to AD2.At the new short-run equilibrium,the price level is ________ and real GDP is ________.
A)90; 900 
B)110; 800 
C)60; 1000 
D)60; 700 
E)90; 1250

The Diagram Below Shows an AD/AS Model for a Hypothetical