The following aggregate demand and supply schedules are for a hypothetical economy:

-Refer to the above data.If the price level is 150 and producers supply $300 of real output:
A) a shortage of real output of $200 will occur.
B) a shortage of real output of $100 will occur.
C) a surplus of real output of $300 will occur.
D) neither a shortage nor a surplus of real output will occur.

Question

The following aggregate demand and supply schedules are for a hypothetical economy:
 
-Refer to the above data.If the price level is 150 and producers supply $300 of real output:
A) a shortage of real output of $200 will occur. 
B) a shortage of real output of $100 will occur. 
C) a surplus of real output of $300 will occur. 
D) neither a shortage nor a surplus of real output will occur.

Quizplus · Accepted Answer

At a price level of 150, producers are willing to supply $300 of real output. However, the quantity demanded at this price level is only $100. Therefore, there will be a shortage of real output of $200.

The Following Aggregate Demand and Supply Schedules Are for a Hypothetical