-Refer to the above diagram.If equilibrium real output is Q₂,then: A) aggregate demand is AD₁. B) the equilibrium price level is P₁. C) producers will supply output level Q₁. D) the equilibrium price level is P₂.

Question

Quizplus · Accepted Answer

If the equilibrium real output is Q2, then the equilibrium price level must be P2, as equilibrium is determined by the intersection of the aggregate demand and aggregate supply curves at that output level.

-Refer to the Above Diagram