$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Amount of Real Output } \
\text { Demanded }
\end{array} & \text { Price Level (Index Value) } & \begin{array} { c }
\text { Amount of Real Output } \
\text { Supplied }
\end{array} \
\hline \$ 200 & 300 & \$ 500 \
\hline 300 & 250 & 450 \
\hline 400 & 200 & 400 \
\hline 500 & 150 & 300 \
\hline 600 & 100 & 200 \
\hline
\end{array}$$ The table gives aggregate demand and supply schedules for a hypothetical economy. The equilibrium price level will be
A) 150.
B) 200.
C) 250.
D) 300.

Question

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Amount of Real Output } \
\text { Demanded }
\end{array} & \text { Price Level (Index Value) } & \begin{array} { c } 
\text { Amount of Real Output } \
\text { Supplied }
\end{array} \
\hline \$ 200 & 300 & \$ 500 \
\hline 300 & 250 & 450 \
\hline 400 & 200 & 400 \
\hline 500 & 150 & 300 \
\hline 600 & 100 & 200 \
\hline
\end{array}$$ The table gives aggregate demand and supply schedules for a hypothetical economy. The equilibrium price level will be
A) 150.
B) 200.
C) 250.
D) 300.

Quizplus · Accepted Answer

The equilibrium price level is where the quantity of real output demanded equals the quantity of real output supplied. This occurs at a price level of 200, where both the amount of real output demanded and supplied is 400. This is the only price level where the two schedules intersect.

The Table Gives Aggregate Demand and Supply Schedules for a \hline

The Table Gives Aggregate Demand and Supply Schedules for a
\hline