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

-Refer to Table 5.2 to answer this question.If the aggregate quantity demanded falls by $100 at every price level,what will be the new equilibrium price level and real output,respectively?
A)100 and $550.
B)105 and $650.
C)110 and $650.
D)115 and $500.

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.If the aggregate quantity demanded falls by $100 at every price level,what will be the new equilibrium price level and real output,respectively?
A)100 and $550. 
B)105 and $650. 
C)110 and $650. 
D)115 and $500.

Quizplus · Accepted Answer

If the aggregate quantity demanded falls by $100 at every price level, the aggregate demand schedule shifts downward by $100. The new equilibrium price level is $105 and the corresponding real output is $650. This can be seen where aggregate demand intersects with aggregate supply at a quantity of 650.

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