Use the table below to answer the following questions.
Table 26.3.1

-Refer to Table 26.3.1. Consider the economy represented in the table. In short-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________ billion.
A)120; $600
B)120; $500
C)125; $550
D)130; $600
E)130; $500

Question

Use the table below to answer the following questions.
Table 26.3.1
 
-Refer to Table 26.3.1. Consider the economy represented in the table. In short-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________ billion.
A)120; $600 
B)120; $500 
C)125; $550 
D)130; $600 
E)130; $500

Quizplus · Accepted Answer

Based on the table, the short-run equilibrium occurs where aggregate expenditures (AE) equal output (Y), which is at a real GDP level of $550 billion. At this same level of output, the price level is 125. Therefore, the correct answer choice is C.

Use the Table Below to Answer the Following Questions