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.At what level of real output will full employment occur?
A)900.
B)950.
C)1,000.
D)1,100.
E)It cannot be determined.

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.At what level of real output will full employment occur?
A)900. 
B)950. 
C)1,000. 
D)1,100. 
E)It cannot be determined.

Quizplus · Accepted Answer

Full employment level of output cannot be determined without additional information such as the natural rate of unemployment, potential GDP, or the structure of the labor market.

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