-In the above figure, at the price level of 140 and real GDP of
A) $12 trillion, consumers will not be able to buy all the goods and services they demand.
B) $12 trillion, firms will not be able to sell all their output.
C) $4 trillion, firms will not be able to sell all their output.
D) $4 trillion, consumers will not be able to buy all the goods and services they demand.

Question

-In the above figure, at the price level of 140 and real GDP of
A) $12 trillion, consumers will not be able to buy all the goods and services they demand. 
B) $12 trillion, firms will not be able to sell all their output. 
C) $4 trillion, firms will not be able to sell all their output. 
D) $4 trillion, consumers will not be able to buy all the goods and services they demand.

Quizplus · Accepted Answer

At a price level of 140 and real GDP of $12 trillion, it is likely that the aggregate supply exceeds aggregate demand, meaning firms will not be able to sell all their output.

-In the Above Figure, at the Price Level of 140