Exhibit 11-1

-Given aggregate demand and aggregate supply schedule #1 in Exhibit 11-1, the equilibrium level of output is
A)$5.0
B)$5.5
C)$6.0
D)$6.5
E)$7.0

Question

Exhibit 11-1
 
-Given aggregate demand and aggregate supply schedule #1 in Exhibit 11-1, the equilibrium level of output is
A)$5.0 
B)$5.5 
C)$6.0 
D)$6.5 
E)$7.0

Quizplus · Accepted Answer

The equilibrium level of output is where aggregate demand intersects with aggregate supply. In the given schedule #1, the intersection point of AD and AS occurs at the output level of $6.0. Therefore, C) $6.0 is the correct answer. The other options are either above or below the equilibrium level, as they do not intersect with the other curve at any point.

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