Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be A)$10 billion and 200. B)$10 billion and 150. C)$10 billion and 100. D)$4 billion and 150.

Question

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The Answer of Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be A)$10 billion and 200. B)$10 billion and 150. C)$10 billion and 100. D)$4 billion and 150.

Beginning from Long-Run Equilibrium at Point E1 in Figure 10-18

Beginning from Long-Run Equilibrium at Point E₁ in Figure 10-18