In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 100 and real GDP of $15.0 trillion, then it must be the case that

A) aggregate demand has increased.
B) aggregate demand has decreased.
C) aggregate supply has decreased.
D) aggregate supply has increased.

B

Economics

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____________ is the change in total cost that results from a one unit increase in output

Fill in the blank(s) with the appropriate word(s).

Economics

In reference to welfare recipients, the high effective marginal tax rate on earnings

a. encourages self-sufficiency b. encourages more labor market activity c. discourages employment d. increases total family income if the marginal tax rate exceeds 100 percent e. tends to increase welfare benefits as more income is earned up to the "means-test" threshold

Economics