-Based on the Data in the Table Above, the Economy

question 342

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \text { Price level } & \begin{array} { l } \text { A ggregate demand } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { l } \text { Short-run aggregate } \\\text { supply (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run aggregate } \\\text { supply (trilli ons of } \\2005 \text { dollars) }\end{array} \\\hline 100 & 11 & 7 & 10 \\\hline 110 & 10 & 8 & 10 \\\hline 120 & 9 & 9 & 10 \\\hline 130 & 8 & 10 & 10 \\\hline 140 & 7 & 11 & 10 \\\hline\end{array}$$
-Based on the data in the table above, the economy will be in short -run equilibrium at a price level of

• A) 110.
• B) 120.
• C) 100.
• D) 90.

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Definitions:

Absolute Pitch

The ability to identify or reproduce a musical note without the need for a reference tone.

Intermediate-Frequency

A frequency range that lies between the high frequency and low frequency bands, often used in radio frequency applications.

High Frequencies

Sound waves that have a very short wavelength and are typically perceived as high-pitched sounds.

Place Principle

A theory in auditory perception that suggests different parts of the cochlea are activated by different frequencies of sound, contributing to the perception of pitch.