Figure 11.3: -Using Figure 11.3,if the equilibrium price level is P₁ then aggregate supply is: A) AS₂ and the equilibrium output level is Q₂. B) AS₂ and the equilibrium output level is Q₁. C) AS₁ and the equilibrium output level is Q₃. D) AS₁ and the equilibrium output level is Q₂.

Question

Quizplus · Accepted Answer

At the equilibrium price level of P₁, aggregate demand intersects with aggregate supply curve at point E, which corresponds to the output level of Q₂. Therefore, the correct choice is option D.

Figure 11.3: -Using Figure 11.3,if the Equilibrium Price Level Is P1 Then

Figure 11.3: -Using Figure 11.3,if the Equilibrium Price Level Is P₁ Then