Beginning from long-run equilibrium at point E₁ in Exhibit 1, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI)in short-run equilibrium will be: A)$12 billion and 200. B)$8 billion and 250. C)$8 billion and 150. D)$12 billion and 250.

Question

Quizplus · Accepted Answer

The Answer of Beginning from long-run equilibrium at point E₁ in Exhibit 1, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI)in short-run equilibrium will be: A)$12 billion and 200. B)$8 billion and 250. C)$8 billion and 150. D)$12 billion and 250.

Beginning from Long-Run Equilibrium at Point E1 in Exhibit 1

Beginning from Long-Run Equilibrium at Point E₁ in Exhibit 1