Data on output and planned aggregate expenditure in Macroland are given below.
Based on these data, the short-run equilibrium level of output is:
A)2,000.
B)3,200.
C)4,100.
D)5,000.

Name: Data on output and planned aggregate expenditure in Macroland are given below. Based on these data, the short-run equilibrium level of output is: A)2,000. B)3,200. C)4,100. D)5,000.
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Question

Data on output and planned aggregate expenditure in Macroland are given below.   
Based on these data, the short-run equilibrium level of output is:
A)2,000. 
B)3,200. 
C)4,100. 
D)5,000.

Quizplus · Accepted Answer

Short-run equilibrium occurs at the level of output where Y equals PAE. The PAE line and 45-degree line cross at that point.

Data on Output and Planned Aggregate Expenditure in Macroland Are