Exhibit 12-3
-In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS₅₀in Exhibit 12-3, what would be the short-run equilibrium level of real GDP and the price level?

Question

Exhibit 12-3 Exhibit 12-3 -In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS<sub>50 </sub>in Exhibit 12-3, what would be the short-run equilibrium level of real GDP and the price level? A) $300 and 20 B) $500 and 20 C) $300 and 40 D) $500 and 50 E) $300 and 50

Exhibit 12-3 -In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS<sub>50 </sub>in Exhibit 12-3, what would be the short-run equilibrium level of real GDP and the price level? A) $300 and 20 B) $500 and 20 C) $300 and 40 D) $500 and 50 E) $300 and 50

-In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS₅₀in Exhibit 12-3, what would be the short-run equilibrium level of real GDP and the price level?

Quizplus · Accepted Answer

The short-run equilibrium level of real GDP is where the aggregate demand curve intersects with the short-run aggregate supply curve. In this case, that point is at $300 billion in real GDP and a price level of 40. Therefore, choice C is the correct answer. The other options are either above or below this point of intersection.

Exhibit 12-3 -In an Economy Characterized by the Aggregate Demand Curve AD