Table 5.2 shows the aggregate demand and supply schedules for the economy of Adana.

-Refer to Table 5.2 to answer this question.What are the implications if the price level is 100?
A)The price level is above equilibrium.
B)There is a shortage of real output of $250.
C)There is a surplus of real output of $250.
D)There is a surplus of real output of $150.

Question

Table 5.2 shows the aggregate demand and supply schedules for the economy of Adana.
 
-Refer to Table 5.2 to answer this question.What are the implications if the price level is 100?
A)The price level is above equilibrium. 
B)There is a shortage of real output of $250. 
C)There is a surplus of real output of $250. 
D)There is a surplus of real output of $150.

Quizplus · Accepted Answer

Without access to Table 5.2, we can infer that if there is a specific implication mentioned (such as a shortage of real output of $250), it suggests a mismatch between supply and demand at the given price level. In this context, stating there is a shortage implies that at a price level of 100, demand exceeds supply by $250, indicating the price level is below the equilibrium where supply equals demand.

Table 52 Shows the Aggregate Demand and Supply Schedules for the the Economy