-Using the Data in the Above Table, in the Long

question 187

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 100 & 13 & 9 & 10 \\\hline 105 & 12 & 10 & 10 \\\hline 110 & 11 & 11 & 10 \\\hline 115 & 10 & 13 & 10 \\\hline\end{array}$$
-Using the data in the above table, in the long -run macroeconomic equilibrium, the price level is____________ and the level of real GDP is____________ .

• A) 115; $11 trillion
• B) 115; $10 trillion
• C) 105; $11 trillion
• D) 110; $10 trillion

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Definitions:

Explicit Cost

Direct payment made to others in the process of running a business, such as wages, rent, and materials.

Future Earnings

The projected income a person or entity will receive from work or investments in the future.

Migration

The movement of people from one place to another, often across political boundaries, for the purpose of settling temporarily or permanently.

Wage Rate

The amount of money paid to an employee for a specific amount of work, typically expressed per hour or year.