-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________.
A) 120; $400
B) 110; $500
C) 90; $400
D) 100; $600

Question

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________.
A) 120; $400 
B) 110; $500 
C) 90; $400 
D) 100; $600

Quizplus · Accepted Answer

In long-run macroeconomic equilibrium, the aggregate demand (AD) equals the long-run aggregate supply (LRAS), which occurs at a price level where the quantity of AD equals the quantity of LRAS. The correct option is the one where these two quantities match, indicating equilibrium.

-The Table Above Gives the Aggregate Demand and Aggregate Supply