$$\begin{array} { c c c }
\begin{array} { c }
\text { Price level } \
\text { (GDP deflator) }
\end{array} & \begin{array} { c }
\text { Real GDP demanded } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { c }
\text { Real GDP supplied } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} \
\hline 80 & 10 & 2 \
90 & 9 & 4 \
100 & 8 & 6 \
110 & 7 & 7 \
120 & 6 & 8 \
130 & 4 & 9 \
\hline
\end{array}$$
The table gives the aggregate demand and aggregate supply schedules for a nation.
-The equilibrium price level is
A)130.
B)120.
C)110.
D)100.
E)90.

Question

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price level } \
\text { (GDP deflator) }
\end{array} & \begin{array} { c } 
\text { Real GDP demanded } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { c } 
\text { Real GDP supplied } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} \
\hline 80 & 10 & 2 \
90 & 9 & 4 \
100 & 8 & 6 \
110 & 7 & 7 \
120 & 6 & 8 \
130 & 4 & 9 \
\hline
\end{array}$$ 
The table gives the aggregate demand and aggregate supply schedules for a nation.
-The equilibrium price level is
A)130.
B)120.
C)110.
D)100.
E)90.

Quizplus · Accepted Answer

The equilibrium price level is where real GDP demanded equals real GDP supplied, which occurs at a price level of 110.

The Table Gives the Aggregate Demand and Aggregate Supply Schedules