Exhibit 17-1
-In Exhibit 17-1,the equilibrium level of output determined by private decisions is
A)0 units
B)100 units
C)between 100 and 160 units
D)160 units
E)the answer cannot be determined from the information given

Question

Exhibit 17-1 
-In Exhibit 17-1,the equilibrium level of output determined by private decisions is
A)0 units 
B)100 units 
C)between 100 and 160 units 
D)160 units 
E)the answer cannot be determined from the information given

Quizplus · Accepted Answer

The equilibrium level of output occurs at the intersection of the aggregate demand and aggregate supply curves, which is at a quantity of 160 units in the diagram. This is the level at which the quantity demanded by consumers is equal to the quantity produced by firms, and thus the level at which private decisions determine output.

Exhibit 17-1 -In Exhibit 17-1,the Equilibrium Level of Output Determined by Private