-In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $13.5 trillion.
B) $12.5 trillion.
C) $13.0 trillion.
D) None of the above answers is correct.

Question

-In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $13.5 trillion. 
B) $12.5 trillion. 
C) $13.0 trillion. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

At a price level of 120, the economy is at point A on the aggregate supply curve. At this point, firms are willing to supply output equal to $13.5 trillion.

-In the Figure Above, the Economy Is at Point a When