The following are an aggregate demand and supply schedules for a hypothetical economy.All figures in $ billions.

-Refer to the information above to answer this question.What is the equilibrium level of output?
A)800.
B)900.
C)1,000.
D)1,100.
E)1,050.

Question

The following are an aggregate demand and supply schedules for a hypothetical economy.All figures in $ billions.
 
-Refer to the information above to answer this question.What is the equilibrium level of output?
A)800. 
B)900. 
C)1,000. 
D)1,100. 
E)1,050.

Quizplus · Accepted Answer

The equilibrium level of output is where aggregate demand equals aggregate supply. In this case, the point where AD and AS intersect is at a price level of 100 and an output level of 1,000. Therefore, the equilibrium level of output is 1,000.

The Following Are an Aggregate Demand and Supply Schedules for a Hypothetical