Table 10.1
$$\begin{array}{l}
\text { Table } 10.1\
\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity of } \
\text { Aggregate Output } \
\text { Demanded (\$) }
\end{array} & \begin{array} { c }
\text { Price } \
\text { Level }
\end{array} & \begin{array} { c }
\text { Quantity of } \
\text { Aggregate Output } \
\text { Supplied (\$) }
\end{array} \
\hline 7.0 & 110 & 5.0 \
\hline 6.5 & 120 & 5.5 \
\hline 6.0 & 130 & 6.0 \
\hline 5.5 & 140 & 6.5 \
\hline 5.0 & 150 & 7.0 \
\hline
\end{array}
\end{array}$$
-Refer to Table 10.1, which shows the aggregate demand and aggregate supply in an economy. The equilibrium output and price level for the economy are _____
A) $7.0 and 110, respectively.
B) $6.5 and 120, respectively.
C) $6.0 and 130, respectively.
D) $5.5 and 140, respectively.
E) $5.0 and 150, respectively.

Question

Table 10.1
 $$\begin{array}{l}
\text { Table } 10.1\
\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity of } \
\text { Aggregate Output } \
\text { Demanded (\$) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { Level }
\end{array} & \begin{array} { c } 
\text { Quantity of } \
\text { Aggregate Output } \
\text { Supplied (\$) }
\end{array} \
\hline 7.0 & 110 & 5.0 \
\hline 6.5 & 120 & 5.5 \
\hline 6.0 & 130 & 6.0 \
\hline 5.5 & 140 & 6.5 \
\hline 5.0 & 150 & 7.0 \
\hline
\end{array}
\end{array}$$
-Refer to Table 10.1, which shows the aggregate demand and aggregate supply in an economy. The equilibrium output and price level for the economy are _____
A) $7.0 and 110, respectively.
B) $6.5 and 120, respectively.
C) $6.0 and 130, respectively.
D) $5.5 and 140, respectively.
E) $5.0 and 150, respectively.

Quizplus · Accepted Answer

Equilibrium output and price level occur where aggregate demand equals aggregate supply. Looking at the table, we see that the quantity of aggregate output demanded is equal to the quantity of aggregate output supplied at a price level of $130 and an output level of 6.0. Thus, the equilibrium output and price level are $6.0 and 130, respectively.

Table 101 -Refer to Table 10