The following aggregate demand and supply schedules are for a hypothetical economy: Refer to the above data.The equilibrium price level will be:
A)150
B)200
C)250
D)300

Question

The following aggregate demand and supply schedules are for a hypothetical economy:  Refer to the above data.The equilibrium price level will be:
A)150 
B)200 
C)250 
D)300

Quizplus · Accepted Answer

The equilibrium price level is where aggregate demand and aggregate supply intersect. This occurs at a price level of 200 in this economy, with both AD and AS equal to 800. At any other price level, there would be a surplus or a shortage in the goods and services market, leading to adjustments in prices until equilibrium is reached.

The Following Aggregate Demand and Supply Schedules Are for a Hypothetical