-In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________.
A) 100; $15.5 trillion
B) 120; $16 trillion
C) 110; $15.5 trillion
D) 100; $16 trillion

Question

-In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________.
A) 100; $15.5 trillion 
B) 120; $16 trillion 
C) 110; $15.5 trillion 
D) 100; $16 trillion

Quizplus · Accepted Answer

The short-run equilibrium in an economy is determined at the intersection of the aggregate demand (AD) curve and the short-run aggregate supply (SRAS) curve. The correct choice, C, indicates the price level and real GDP where these two curves intersect.

-In the Above Figure, the Short-Run Equilibrium Is at the Price