-Refer to the table in the exhibit.Consider the aggregate demand and the aggregate supply schedule #3.What is the equilibrium output level and price level?
A) Output is $6.50, and price level is 120.
B) Output is $6.00, and price level is 130.
C) Output is $5.00, and price level is 150.
D) Output is $5.50, and price level is 140.

Question

-Refer to the table in the exhibit.Consider the aggregate demand and the aggregate supply schedule #3.What is the equilibrium output level and price level?  
A) Output is $6.50, and price level is 120. 
B) Output is $6.00, and price level is 130. 
C) Output is $5.00, and price level is 150. 
D) Output is $5.50, and price level is 140.

Quizplus · Accepted Answer

The equilibrium output level and price level occur where aggregate demand equals aggregate supply. According to schedule #3, this happens at an output of $5.50 and a price level of 140.

-Refer to the Table in the Exhibit