Exhibit 11-3

-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS50.What is the short-run equilibrium level of real GDP and the price level?
A) $300 and 20
B) $500 and 20
C) $300 and 40
D) $500 and 50

Question

Exhibit 11-3
 
-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS50.What is the short-run equilibrium level of real GDP and the price level?  
A) $300 and 20 
B) $500 and 20 
C) $300 and 40 
D) $500 and 50

Quizplus · Accepted Answer

The short-run equilibrium occurs where the aggregate demand curve (AD) intersects the short-run aggregate supply curve (SRAS50). At this intersection, the real GDP is $300 and the price level is 40.

Exhibit 11-3 -Refer to the Graph in the Exhibit.Consider an Economy Characterized