Use the figure below to answer the following questions.
Figure 10.3.2
-Refer to Figure 10.3.2.When the economy is in short- run macroeconomic equilibrium, the price level is
A)80.
B)75.
C)95.
D)70.
E)65.

Question

Use the figure below to answer the following questions.
  Figure 10.3.2
-Refer to Figure 10.3.2.When the economy is in short- run macroeconomic equilibrium, the price level is
A)80. 
B)75. 
C)95. 
D)70. 
E)65.

Quizplus · Accepted Answer

In short-run macroeconomic equilibrium, the price level is determined where the aggregate demand curve intersects the short-run aggregate supply curve. According to Figure 10.3.2, this intersection occurs at a price level of 80.

Use the Figure Below to Answer the Following Questions