-In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________.
A) 100; $17.5 trillion
B) 120; $18 trillion
C) 110; $17.5 trillion
D) 100; $18 trillion

Question

-In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________.
A) 100; $17.5 trillion 
B) 120; $18 trillion 
C) 110; $17.5 trillion 
D) 100; $18 trillion

Quizplus · Accepted Answer

In the short-run equilibrium, the aggregate demand curve intersects the short-run aggregate supply curve. The correct option, C, indicates the price level and real GDP where this intersection occurs, based on the provided figure.

-In the Above Figure, the Short-Run Equilibrium Is at the Price