Exhibit 11-1

-Given aggregate demand and aggregate supply schedule #1 in Exhibit 11-1, the equilibrium price level is
A)110
B)120
C)130
D)140
E)150

Question

Exhibit 11-1
 
-Given aggregate demand and aggregate supply schedule #1 in Exhibit 11-1, the equilibrium price level is
A)110 
B)120 
C)130 
D)140 
E)150

Quizplus · Accepted Answer

The equilibrium price level occurs at the intersection of aggregate demand and aggregate supply. Based on Exhibit 11-1, this occurs at a price level of 130. At this price level, the quantity of real GDP demanded and supplied are equal, resulting in no excess demand or supply in the economy.

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