$$\begin{array} { | l | l | l | l | }
\hline \begin{array} { l }
\text { Price } \
\text { level }
\end{array} & \begin{array} { l }
\text { A ggregate } \
\text { demand } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l }
\text { Short-run } \
\text { aggregate } \
\text { supply } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l }
\text { Long-run } \
\text { aggregate } \
\text { supply } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} \
\hline 100 & 13 & 9 & 10 \
\hline 105 & 12 & 10 & 10 \
\hline 110 & 11 & 11 & 10 \
\hline 115 & 10 & 13 & 10 \
\hline
\end{array}$$
-Using the data in the above table, in the short-run macroeconomic equilibrium, the price level is____________ and the level of real GDP is____________ .
A) 105; $10 trillion
B) 115; $10 trillion
C) 110; $10 trillion
D) 110; $11 trillion

Question

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Price } \
\text { level }
\end{array} & \begin{array} { l } 
\text { A ggregate } \
\text { demand } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l } 
\text { Short-run } \
\text { aggregate } \
\text { supply } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l } 
\text { Long-run } \
\text { aggregate } \
\text { supply } \
\text { (trillions of } \
\text { 2005 dollars) }
\end{array} \
\hline 100 & 13 & 9 & 10 \
\hline 105 & 12 & 10 & 10 \
\hline 110 & 11 & 11 & 10 \
\hline 115 & 10 & 13 & 10 \
\hline
\end{array}$$
-Using the data in the above table, in the short-run macroeconomic equilibrium, the price level is____________  and the level of real GDP is____________  .
A) 105; $10 trillion
B) 115; $10 trillion
C) 110; $10 trillion
D) 110; $11 trillion

Quizplus · Accepted Answer

In the short-run macroeconomic equilibrium, aggregate demand equals short-run aggregate supply. At a price level of 110, both are $11 trillion.

-Using the Data in the Above Table, in the Short-Run