The Following Table Shows an Aggregate Demand Schedule and an Aggregate

question 82

Multiple Choice

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true?
Table 5.1
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$$\begin{array} { | c | c | c | } \hline \begin{array} { l } \text { Aggregate Demand (quantity } \\\text { demanded in billions of } \\\text { dollars) }\end{array} & \begin{array} { l } \text { Price Level } \\\text { (\$) }\end{array} & \begin{array} { l } \text { Aggregate Supply (quantity supplied in } \\\text { billions of doll ars) }\end{array} \\\hline 100 & 150 & 1,200 \\\hline 200 & 125 & 1,000 \\\hline 400 & 100 & 800 \\\hline 600 & 75 & 600 \\\hline 800 & 50 & 400 \\\hline 1,000 & 25 & 200 \\\hline\end{array}$$

• A)Equilibrium output is $1,000,and equilibrium price level is 25.
• B)Equilibrium output is $800,and equilibrium price level is 50.
• C)Equilibrium output is $200,and equilibrium price level is 125.
• D)Equilibrium output is $400,and equilibrium price level is 25.
• E)Equilibrium output is $600,and equilibrium price level is 75.

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Definitions:

Reinforcement

In behavioral psychology, a process in which a stimulus increases the probability of a behavior by either presenting a positive reward (positive reinforcement) or removing a negative condition (negative reinforcement).

Behavioral Approach

A psychological concept focusing on observable behaviors and the ways in which it's possible to alter undesirable behaviors through conditioning.

Punishment

A process in operant conditioning where a response is followed by a stimulus that decreases the likelihood of the response occurring in the future.

Aggressive Impulses

Instinctive urges to act or react in a hostile or violent way towards others or oneself.