$$\begin{array}{l}
\text { Real GDP supplied }\
\begin{array} { | l | l | l | l | }
\hline \text { Price level } & \begin{array} { l }
\text { Real GDP } \
\text { demanded } \
\text { (dollars) }
\end{array} & \begin{array} { l }
\text { Short run } \
\text { (dollars) }
\end{array} & \begin{array} { l }
\text { Long run } \
\text { (dollars) }
\end{array} \
\hline 90 & 700 & 300 & 600 \
\hline 100 & 600 & 400 & 600 \
\hline 110 & 500 & 500 & 600 \
\hline 120 & 400 & 600 & 600 \
\hline
\end{array}
\end{array}$$
-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be __________ and real GDP will be __________ .
A) 110; $500
B) 120; $400
C) 100; $600
D) 90; $400

Question

$$\begin{array}{l}
\text { Real GDP supplied }\
\begin{array} { | l | l | l | l | } 
\hline \text { Price level } & \begin{array} { l } 
\text { Real GDP } \
\text { demanded } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Short run } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Long run } \
\text { (dollars) }
\end{array} \
\hline 90 & 700 & 300 & 600 \
\hline 100 & 600 & 400 & 600 \
\hline 110 & 500 & 500 & 600 \
\hline 120 & 400 & 600 & 600 \
\hline
\end{array}
\end{array}$$
-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be __________ and real GDP will be __________ .
A) 110; $500
B) 120; $400
C) 100; $600
D) 90; $400

Quizplus · Accepted Answer

In long-run macroeconomic equilibrium, real GDP supplied equals real GDP demanded at the long-run aggregate supply level. Here, at a price level of 100, real GDP demanded is $600, which matches the long-run real GDP supplied of $600.

-The Table Above Gives the Aggregate Demand and Aggregate Supply