-In the figure above, the economy is at point A when the price level falls to 100. Money wage rates and all other resource prices remain constant. Firms are willing to supply output equal to
A) $13.5 trillion.
B) $13.0 trillion.
C) $12.5 trillion.
D) None of the above answers is correct.

Question

-In the figure above, the economy is at point A when the price level falls to 100. Money wage rates and all other resource prices remain constant. Firms are willing to supply output equal to
A) $13.5 trillion. 
B) $13.0 trillion. 
C) $12.5 trillion. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

When the price level falls to 100 and money wage rates and other resource prices remain constant, firms are willing to supply output at the level indicated by the aggregate supply curve at that price level, which is $12.5 trillion.

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