Refer to the information provided in Figure 11.1 below to answer the questions that follow. Figure 11.1
-Refer to Figure 11.1. Between the output levels of $500 billion and $1,000 billion, the relationship between the price level and output is
A) constant.
B) negative.
C) positive.
D) indeterminate.

Question

Refer to the information provided in Figure 11.1 below to answer the questions that follow.  Figure 11.1
-Refer to Figure 11.1. Between the output levels of $500 billion and $1,000 billion, the relationship between the price level and output is
A) constant. 
B) negative. 
C) positive. 
D) indeterminate.

Quizplus · Accepted Answer

Between the output levels of $500 billion and $1,000 billion, if the price level increases, it typically indicates that demand is outpacing supply, leading to an increase in output to meet this demand. This scenario suggests a positive relationship between the price level and output within the specified range.

Refer to the Information Provided in Figure 11