-In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output.
B) $5 trillion, firms will not be able to sell all their output.
C) $5 trillion, consumers will not be able to buy all the goods and services they demand.
D) $15 trillion, consumers will not be able to buy all the goods and services they demand.

Question

-In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output. 
B) $5 trillion, firms will not be able to sell all their output. 
C) $5 trillion, consumers will not be able to buy all the goods and services they demand. 
D) $15 trillion, consumers will not be able to buy all the goods and services they demand.

Quizplus · Accepted Answer

At a price level of 140 and real GDP of $15 trillion, the supply exceeds demand, meaning firms will not be able to sell all their output.

-In the Above Figure, at the Price Level of 140