$$\begin{array} { | l | l | l | l | }
\hline \text { Price level } & \begin{array} { l }
\text { A ggregate demand } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { l }
\text { Short-run aggregate } \
\text { supply (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l }
\text { Long-run aggregate } \
\text { supply (trilli ons of } \
2005 \text { dollars) }
\end{array} \
\hline 100 & 11 & 7 & 10 \
\hline 110 & 10 & 8 & 10 \
\hline 120 & 9 & 9 & 10 \
\hline 130 & 8 & 10 & 10 \
\hline 140 & 7 & 11 & 10 \
\hline
\end{array}$$
-Based on the data in the table above, the economy will be in short -run equilibrium at a price level of
A) 110.
B) 120.
C) 100.
D) 90.

Question

$$\begin{array} { | l | l | l | l | } 
\hline \text { Price level } & \begin{array} { l } 
\text { A ggregate demand } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { l } 
\text { Short-run aggregate } \
\text { supply (trillions of } \
\text { 2005 dollars) }
\end{array} & \begin{array} { l } 
\text { Long-run aggregate } \
\text { supply (trilli ons of } \
2005 \text { dollars) }
\end{array} \
\hline 100 & 11 & 7 & 10 \
\hline 110 & 10 & 8 & 10 \
\hline 120 & 9 & 9 & 10 \
\hline 130 & 8 & 10 & 10 \
\hline 140 & 7 & 11 & 10 \
\hline
\end{array}$$
-Based on the data in the table above, the economy will be in short -run equilibrium at a price level of
A) 110.
B) 120.
C) 100.
D) 90.

Quizplus · Accepted Answer

The short-run equilibrium occurs where aggregate demand equals short-run aggregate supply. At a price level of 120, both aggregate demand and short-run aggregate supply are 9 trillion dollars.

-Based on the Data in the Table Above, the Economy