Real Domestic Output Real Domestic Output Demanded (In Billions) Price

question 111

Multiple Choice

Real Domestic Output Real Domestic Output Demanded (in Billions) Price Level (Index Value) Supplied
$500 350 $3,500
1,000 300 3,000
1,500 250 2,500
2,000 200 2,000
2,500 150 1,500
3,000 100 1,000
The accompanying table shows the aggregate demand and aggregate supply schedule for a
Hypothetical economy. If the quantity of real domestic output demanded decreased by $500 and
The quantity of real domestic output supplied increased by $500 at each price level, the new
Equilibrium price level and quantity of real domestic output would be

• A) 150 and $1,500.
• B) 150 and $2,000.
• C) 200 and $2,000.
• D) 250 and $2,000.

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Definitions:

Measure Of

A general term for a quantitative indicator used to assess or evaluate a specific attribute or property.

Geometric Mean

The central tendency of a set of numbers that is calculated by taking the nth root (where n is the count of numbers) of the product of the values.

Weighted Mean

The mean obtained by assigning each observation a weight that reflects its importance.

Arithmetic Mean

The sum of a set of numerical values divided by the number of values, commonly referred to as the average.