Exhibit 11-1

-Given aggregate demand and aggregate supply schedule #2 in Exhibit 11-1, the equilibrium output level and price level are
A)output $7.0, price level 110
B)output $6.5, price level 120
C)output $6.0, price level 130
D)output $5.5, price level 140
E)output $5.0, price level 150

Question

Exhibit 11-1
 
-Given aggregate demand and aggregate supply schedule #2 in Exhibit 11-1, the equilibrium output level and price level are
A)output $7.0, price level 110 
B)output $6.5, price level 120 
C)output $6.0, price level 130 
D)output $5.5, price level 140 
E)output $5.0, price level 150

Quizplus · Accepted Answer

In Exhibit 11-1, the equilibrium output level can be found where aggregate demand (AD) intersects with aggregate supply (AS). At a price level of 120, the quantity demanded (Qd) and quantity supplied (Qs) are equal at an output level of 6.5. Therefore, the equilibrium output level and price level are output $6.5, price level 120.

Exhibit 11-1 -Given Aggregate Demand and Aggregate Supply Schedule #2 in Exhibit