Exhibit 14-2 Aggregate supply and demand curves AS 2 AS 150 125 Price level 100 (CPI) E 1 75 50 AD 25 0 2 4 6 8 10 12 Real GDP (billions of dollars per year) In Exhibit 14-2, the change in equilibrium from E1 to E2 represents: cost-push inflation O demand-pull inflation. price-push inflation wage-push inflation. D Question 7 When the price level falls, the total quantities of goods and services demanded: O decrease. O stay the same. increase. increases and then decreases