If the equilibrium price level is 135 but the actual price level is 120, then
A) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
B) aggregate demand will decrease to restore equilibrium.
C) aggregate demand will increase to restore equilibrium.
D) firms decrease their production because they cannot sell the output they produce.
E) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.

Question

Quizplus · Accepted Answer

When the actual price level is below the equilibrium price level, it means that the price of goods and services is lower than what it would be at equilibrium. This lower price level increases the quantity of goods and services demanded by consumers, making the quantity of real GDP demanded greater than the quantity of real GDP supplied.

If the Equilibrium Price Level Is 135 but the Actual