The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short- run macroeconomic equilibrium is a price level of and a real GDP of _ .
A) 90; $400
B) 100; $400
C) 120; $400
D) 110; $500

Question

Quizplus · Accepted Answer

The short-run macroeconomic equilibrium occurs where aggregate demand equals aggregate supply. At a price level of 110, both aggregate demand and aggregate supply are $500.

The Table Above Gives the Aggregate Demand and Aggregate Supply