A) at any price level above G, a shortage of real output would occur.
B) F represents a price level that would result in a surplus of real output of AC.
C) a surplus of real output of GH would occur.
D) F represents a price level that would result in a shortage of real output of AC.

Question

A) at any price level above G, a shortage of real output would occur. 
B) F represents a price level that would result in a surplus of real output of AC. 
C) a surplus of real output of GH would occur. 
D) F represents a price level that would result in a shortage of real output of AC.

Quizplus · Accepted Answer

At price level F, the quantity of real output supplied (AC) is less than the quantity demanded (EF). Therefore, a shortage of real output (of AC) would occur at this price level, as represented by the vertical distance between EF and AC.

A) at Any Price Level Above G, a Shortage of Real