Real GDP per year Refer to the above figure. If the price level is 80 O 1) the a

Question

Real GDP per year Refer to the above figure. If the price level is 80 O 1) the aggregate demand curve will automatically shift leading to a stable equilibrium. O 2) the total planned real expenditures by individuals, businesses, and the government are less than total planned production by firms. 3) the economy will have economic growth and the new equilibrium price level will be 80. O 4) firms the total planned real expenditures by individuals, businesses, and the government exceed total planned production by

Explanation / Answer

In the given diagram if price level is 80 and aggregate supply curve is vertival then aggregate demand curve will automatically shift leading to stable equilibrium.

the option 1 is correct.

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