Consider schedule #1 in the aggregate demand and aggregate supply table given below.The equilibrium output and price level for the economy described on this schedule are:
Table 10.1

Quantity of
Aggregate Output
Demanded

Price
Level
Quantity of
Aggregate Output Supplied
#1
#2
#3
$7)0
110
$5)0
$6)0
$4)0
6)5
120
5)5
6)5
4)5
6)0
130
6)0
7)0
5)0
5)5
140
6)5
7)5
5)5
5)0
150
7)0
8)0
6)0
A)$7.0 and 110,respectively.
B)$6.5 and 120,respectively.
C)$6.0 and 130,respectively.
D)$5.5 and 140,respectively.
E)$5.0 and 150,respectively.

Question

Consider schedule #1 in the aggregate demand and aggregate supply table given below.The equilibrium output and price level for the economy described on this schedule are:​ ​
Table 10.1
​
Quantity of
Aggregate Output
Demanded
​
Price
Level
Quantity of
Aggregate Output Supplied
#1
#2
#3
$7)0
110
$5)0
$6)0
$4)0
6)5
120
5)5
6)5
4)5
6)0
130
6)0
7)0
5)0
5)5
140
6)5
7)5
5)5
5)0
150
7)0
8)0
6)0
A)$7.0 and 110,respectively.
B)$6.5 and 120,respectively.
C)$6.0 and 130,respectively.
D)$5.5 and 140,respectively.
E)$5.0 and 150,respectively.

Quizplus · Accepted Answer

The equilibrium occurs where the quantity of aggregate output demanded equals the quantity of aggregate output supplied. In this case, at a price level of $6.0, both the quantity demanded and supplied are 130.

Consider Schedule #1 in the Aggregate Demand and Aggregate Supply