-In the above figure, the aggregate demand curve is AD₂, so the short- run equilibrium level of real GDP is A) between $12 and $12.5 trillion. B) $12.5 trillion. C) $12 trillion. D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The short-run equilibrium level of real GDP is determined by the intersection of the aggregate demand curve (AD2) with the short-run aggregate supply curve. If the figure shows this intersection at $12.5 trillion, then that is the equilibrium level.

-In the Above Figure, the Aggregate Demand Curve Is AD2

-In the Above Figure, the Aggregate Demand Curve Is AD₂