Exhibit 10-8 Aggregate demand and supply
In Exhibit 10-8, if aggregate demand shifts from AD1 to AD3,
A. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
B. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140.
C. real GDP will increase from $3.0 to $4.0, and the price level does not change.
D. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.
Answer: D
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