-In the above figure,the aggregate demand curve is AD₂,so the long-run equilibrium level of real GDP is
A) $13 trillion.
B) $13.5 trillion.
C) more than $13 and less than $13.5 trillion.
D) None of the above answers is correct.

Question

-In the above figure,the aggregate demand curve is AD₂,so the long-run equilibrium level of real GDP is
A) $13 trillion. 
B) $13.5 trillion. 
C) more than $13 and less than $13.5 trillion. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The long-run equilibrium level of real GDP is determined by the intersection of the aggregate demand curve and the long-run aggregate supply curve. In the given figure, the aggregate demand curve is AD₂, and the long-run aggregate supply curve is LRAS. The intersection of these two curves occurs at a real GDP of $13 trillion.

-In the Above Figure,the Aggregate Demand Curve Is AD₂,so the Long-Run