The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.

-Refer to the above table.The equilibrium price level and quantity of real domestic output will be:
A) 150 and $1000.
B) 150 and $1500.
C) 200 and $2000.
D) 250 and $2500.

Question

The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.
 
-Refer to the above table.The equilibrium price level and quantity of real domestic output will be:
A) 150 and $1000. 
B) 150 and $1500. 
C) 200 and $2000. 
D) 250 and $2500.

Quizplus · Accepted Answer

The equilibrium is determined where aggregate demand equals aggregate supply, which occurs at a price level of 200 and a quantity of $2000.

The Following Table Shows the Aggregate Demand and Aggregate Supply