-In the above figure, the aggregate demand curve is AD?, so the long-run equilibrium level of real GDP is
A) $16 trillion.
B) $16.5 trillion.
C) more than $16 and less than $16.5 trillion.
D) None of the above answers is correct.

Question

-In the above figure, the aggregate demand curve is AD?, so the long-run equilibrium level of real GDP is
A) $16 trillion. 
B) $16.5 trillion. 
C) more than $16 and less than $16.5 trillion. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The aggregate demand curve is AD?, which intersects the aggregate supply curve at point E. The corresponding level of real GDP is $16 trillion.

-In the Above Figure, the Aggregate Demand Curve Is AD