Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 6, the real GDP and price level (CPI) in long-run equilibrium will be:
A) $10 billion and 200.
B) $4 billion and 150.
C) $10 billion and 150.
D) $10 billion and 100.
Correct Answer:
Verified
Q73: Exhibit 6 Aggregate demand and supply model
Q74: In Exhibit 2, the short-run equilibrium depicts
Q75: Exhibit 5 Macro AD-AS Model
Q76: Beginning in Exhibit 5 from long-run equilibrium
Q77: In Exhibit 3, the level of real
Q78: Exhibit 2 Macro AD-AS Model
Q80: In Exhibit 4, the self-correction argument is
Q81: Beginning in Exhibit 6 from long-run equilibrium
Q82: Beginning from a point of short-run equilibrium
Q83: Beginning from long-run equilibrium at point E1
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