Use the figure below to answer the following questions.
Figure 10.3.1
-Refer to Figure 10.3.1.When this economy is in short- run macroeconomic equilibrium, the price level is
A)70.
B)85.
C)90.
D)100.
E)75.

Question

Use the figure below to answer the following questions.
  Figure 10.3.1
-Refer to Figure 10.3.1.When this economy is in short- run macroeconomic equilibrium, the price level is
A)70. 
B)85. 
C)90. 
D)100. 
E)75.

Quizplus · Accepted Answer

At short-run macroeconomic equilibrium, the intersection of AD and SRAS curves determines the price level and real GDP. In this case, the intersection occurs at a price level of 85.

Use the Figure Below to Answer the Following Questions