The Table Above Gives the Aggregate Demand and Aggregate Supply

question 268

Multiple Choice

The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short- run macroeconomic equilibrium is a price level of and a real GDP of _ .

• A) 90; $400
• B) 100; $400
• C) 120; $400
• D) 110; $500

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Definitions:

Average Variable Costs

The sum of all costs that vary with output levels, when divided by the number of units produced.

Drones

Unmanned aerial vehicles (UAVs) capable of flying without a human pilot aboard, used for various purposes from recreation to military.

Total Variable Costs

Costs that vary directly with the level of production, including materials and labor directly involved in a company's manufacturing process.

Drones

Unmanned aerial vehicles (UAVs) used for various purposes, including surveillance, delivery, and recreational uses.