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question in photo Price level (GDP deflator, 2002 = 100) 150 125 100 ADI ADO 0 380 500 620 Real GDP (billions of 2002 dollars)

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Price level (GDP deflator, 2002 = 100) 150 125 100 ADI ADO 0 380 500 620 Real GDP (billions of 2002 dollars) Figure 28.1.3 22) Refer to Figure 28.1.3. Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SASO curve and the ADO curve. If the aggregate demand curve is correctly expected to shift to AD1, new equilibrium real GDP is and the new equilibrium price level is A) $380 billion; 125 B) $500 billion; 150 Our tutors were helpful last time, r C) $500 billion; 100 another question! D) $620 billion; 125 E) $500 billion; 125

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