Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: $\begin{array}{c}
\begin{array}{c}
\text {Amount of Real }\
\underline{\text {Output Demanded}}\
\$ 200 \
300 \
400 \
500 \
600
\end{array}
\begin{array}{c}
\text {Price Level}\
\underline{\text {(Index Value)}}\
300\
250\
200\
150\
100
\end{array}
\begin{array}{c}
\text {Amount of Real}\
\underline{\text {Output Supplied}}\
\$ 500 \
450 \
400 \
300 \
200
\end{array}
\end{array}$ Refer to the data.If the amount of real output demanded at each price level falls by $200,the equilibrium price level and equilibrium level of real domestic output will fall to:
A) 250 and $200,respectively.
B) 200 and $300,respectively.
C) 150 and $300,respectively.
D) 150 and $200,respectively.

Question

Quizplus · Accepted Answer

The new demand schedule will be $0, $100, $200, $300, $400 at price levels 300, 250, 200, 150, 100 respectively. The equilibrium occurs where the amount of real output demanded equals the amount of real output supplied, which is at a price level of 150 and an output of $300.

Answer the Question on the Basis of the Following Aggregate