-If the initial aggregate demand and supply curves are AD₀ and AS₀,the equilibrium price level and real output will be:

Question

Quizplus · Accepted Answer

The equilibrium price level is 0f and the equilibrium real output is 0a. This is because the equilibrium price level is the price level at which the quantity of goods and services demanded is equal to the quantity of goods and services supplied. The equilibrium real output is the level of output at which the economy is operating at full employment.

-If the Initial Aggregate Demand and Supply Curves Are AD0

-If the Initial Aggregate Demand and Supply Curves Are AD₀