-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 120 and real GDP of $12 billion, then it must be the case that
A)aggregate supply has decreased.
B)aggregate supply has increased.
C)aggregate demand has increased.
D)aggregate demand has decreased.

Question

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 120 and real GDP of $12 billion, then it must be the case that
A)aggregate supply has decreased. 
B)aggregate supply has increased. 
C)aggregate demand has increased. 
D)aggregate demand has decreased.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 120 and real GDP of $12 billion, then it must be the case that
A)aggregate supply has decreased. 
B)aggregate supply has increased. 
C)aggregate demand has increased. 
D)aggregate demand has decreased.

-In the Above Figure, the Economy Is at Point a When