AD2. If aggregate demand falls to line AD3, then A. the new equilibrium real Gross Domestic Product (GDP) will be x. B. a new price level will be established at a. C. the new equilibrium will be at k. D.

AD2. If aggregate demand falls to line AD3, then A. the new equilibrium real Gross Domestic Product (GDP) will be x. B. a new price level will be established at a. C. the new equilibrium will be at k. D.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 16RQ: What is the difference between a positive and a normative statement?

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Question

Refer to the figure. Suppose the current aggregate demand is represented by

AD2.

If aggregate demand falls to line

AD3,

then

the new equilibrium real Gross Domestic Product (GDP) will be x.

a new price level will be established at a.

the new equilibrium will be at k.

the new equilibrium will be at j.

Price
Level
AD3
AD2
AD,
h
SRAS
a
Real GDP
per Year
రా

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