Use the Following to Answer Questions

question 141

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Demand and Aggregate Supply at Different Price Levels

-(Exhibit: Aggregate Demand and Aggregate Supply at Different Price Levels) The table shows the aggregate demand and short-run aggregate supply curves for an economy. The potential level of output is $7.6 trillion. What is the initial real GDP and price level?

• A) Real GDP = 7.6 trillion; price level = 1.2
• B) Real GDP = 7.6 trillion; price level = 2.8
• C) Real GDP = 6.8 trillion; price level = 2.0
• D) Real GDP = 7.8 trillion; price level = 1.0

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Definitions:

Legal Age

A defined age at which an individual is granted by law the rights and responsibilities of an adult.

Adolescents

Young people in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

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The act of drinking beverages containing ethanol, which can range from light to heavy drinking, and has various health and social implications.

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The "good" cholesterol that helps remove other forms of cholesterol from the bloodstream, thereby reducing heart disease risk.