Exhibit 10-5
-According to the graph in Exhibit 10-5,if the price level increases,the new equilibrium level of real GDP must be
A) less than $20
B) less than $100
C) zero
D) greater than $100
E) greater than $200

Question

Exhibit 10-5 
-According to the graph in Exhibit 10-5,if the price level increases,the new equilibrium level of real GDP must be
A) less than $20 
B) less than $100 
C) zero 
D) greater than $100 
E) greater than $200

Quizplus · Accepted Answer

As the price level increases, the aggregate demand decreases, causing the equilibrium level of real GDP to decrease. The only option that is less than $100 is B, so it is the best choice.

Exhibit 10-5 -According to the Graph in Exhibit 10-5,if the Price Level