Use the following figure to answer the questions : Figure 8.4: -Using Figure 8.5,if the equilibrium real output is Q₂ then A)Aggregate demand must be AD₁. B)Aggregate demand could be either AD₁ or AD₂ depending on the level of aggregate supply. C)The equilibrium price level is P₂. D)Aggregate supply must be AS1 and the equilibrium price level must be P₁.

Question

Quizplus · Accepted Answer

The equilibrium real output can be achieved at two different levels of aggregate demand, either AD₁ or AD₂, depending on the level of aggregate supply. The equilibrium price level is P₂, but this is not a requirement for the given output level. Therefore, options A, C, and D are incorrect.

Use the Following Figure to Answer the Questions : Figure