-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) $17.5 trillion.
B) $18.0 trillion.
C) $18.5 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) $17.5 trillion. 
B) $18.0 trillion. 
C) $18.5 trillion. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The correct answer is A because at a price level of 100, firms are willing to supply output equal to $17.5 trillion.

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