The equilibrium level of GDP in the economy in the above diagram:
A)is $100.
B)is $200.
C)is $240.
D)is $320.

Name: The equilibrium level of GDP in the economy in the above diagram: A)is $100. B)is $200. C)is $240. D)is $320.
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Question

The equilibrium level of GDP in the economy in the above diagram:
A)is $100. 
B)is $200. 
C)is $240. 
D)is $320.

Quizplus · Accepted Answer

The equilibrium level of GDP is where the aggregate demand (AD) curve intersects the aggregate supply (AS) curve. In the diagram, the AD curve intersects the AS curve at a GDP level of $240, which is the equilibrium level. Therefore, the correct answer is C.

The Equilibrium Level of GDP in the Economy in the Above