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 17.0 trillion, then it must be the case that
A) aggregate demand has decreased.
B) aggregate supply has decreased.
C) aggregate demand has increased.
D) aggregate supply has increased.
Question 2
Using the data in the above table, suppose imports equal 250 billion and investment equals 1,000 billion. Hence government expenditure equals
A) 1,000 billion.
B) 750 billion.
C) 500 billion.
D) 250 billion.
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