APFIVE AD-SRAS Equilibrium and Policy Shift
An economy has an aggregate demand (AD) curve given by $$Y = 5000 - 50*P$$ and a short-run aggregate supply (SRAS) curve given by $$Y = 100*P$$. If a policy causes the AD curve to shift rightward by 500 units, what is the approximate percentage change in equilibrium output when the price level adjusts?
A
Approximately a 5% increase
B
Approximately a 15% increase
C
Approximately a 10% increase
D
No change in output
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