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Answer the Question on the Basis of the Following Aggregate

Question 52

Multiple Choice

Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: Amount of Real Output Demanded$200300400500600Price Level(Index Value) 300250200150100Amount of RealOutput Supplied$500450400300200\begin{array}{c}\begin{array}{c}\text {Amount of Real }\\\underline{\text {Output Demanded}}\\\$ 200 \\300 \\400 \\500 \\600\end{array}\begin{array}{c}\text {Price Level}\\\underline{\text {(Index Value) }}\\300\\250\\200\\150\\100\end{array}\begin{array}{c}\text {Amount of Real}\\\underline{\text {Output Supplied}}\\\$ 500 \\450 \\400 \\300 \\200\end{array}\end{array} Refer to the data.If the price level is 250 and producers supply $450 of real output:


A) a shortage of real output of $150 will occur.
B) a shortage of real output of $100 will occur.
C) a surplus of real output of $150 will occur.
D) neither a shortage nor a surplus of real output will occur.

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