The following are aggregate demand and supply schedules for a hypothetical economy.All figures are in $ billions.
Note: Potential GDP is 3,000.
-Refer to the information above to answer this question.Assume that technological change increases aggregate supply by 340.What will the equilibrium price and quantity be?
A)160 and 3,100.
B)160 and 3,440.
C)170 and 3,440.
D)140 and 2,760.
E)140 and 2,820.

Question

The following are aggregate demand and supply schedules for a hypothetical economy.All figures are in $ billions.
  Note: Potential GDP is 3,000.
-Refer to the information above to answer this question.Assume that technological change increases aggregate supply by 340.What will the equilibrium price and quantity be?
A)160 and 3,100. 
B)160 and 3,440. 
C)170 and 3,440. 
D)140 and 2,760. 
E)140 and 2,820.

Quizplus · Accepted Answer

The Answer of The following are aggregate demand and supply schedules for a hypothetical economy.All figures are in $ billions.
  Note: Potential GDP is 3,000.
-Refer to the information above to answer this question.Assume that technological change increases aggregate supply by 340.What will the equilibrium price and quantity be?
A)160 and 3,100. 
B)160 and 3,440. 
C)170 and 3,440. 
D)140 and 2,760. 
E)140 and 2,820.

The Following Are Aggregate Demand and Supply Schedules for a Hypothetical