Use the figure below to answer the following questions.

Figure 26.3.1
-Refer to Figure 26.3.1. When the economy of Econoworld is in short-run macroeconomic equilibrium, the price level is
A)100.
B)90.
C)75.
D)70.
E)85.

Question

Use the figure below to answer the following questions.
  
Figure 26.3.1
-Refer to Figure 26.3.1. When the economy of Econoworld is in short-run macroeconomic equilibrium, the price level is
A)100. 
B)90. 
C)75. 
D)70. 
E)85.

Quizplus · Accepted Answer

In short-run macroeconomic equilibrium, the price level is determined by the intersection of the aggregate demand and short-run aggregate supply curves. According to Figure 26.3.1, this intersection occurs at a price level of 85.

Use the Figure Below to Answer the Following Questions