Table 10.2

-Refer to Table 10.2, which shows the aggregate demand and aggregate supply in an economy. In schedule #2, 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 10.2
 
-Refer to Table 10.2, which shows the aggregate demand and aggregate supply in an economy. In schedule #2, 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

In schedule #2, the equilibrium output and price level are determined where the aggregate demand equals the aggregate supply. The correct choice, $6.5 and 120, respectively, indicates the point where both demand and supply curves intersect, leading to equilibrium in the economy.

Table 10.2 -Refer to Table 10.2, Which Shows the Aggregate Demand and the Aggregate