Table 51 -Refer to Table 5

question 46

Multiple Choice

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

• 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 100.
• E) Equilibrium output is $600, and equilibrium price level is 75.

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Definitions:

Jet Pumps

Mechanical devices that use a high velocity jet of fluid to entrain a lower pressure fluid and raise its pressure.

Uni-directional

Capable of moving or operating in only one direction, often used in reference to devices or mechanical components.

Maximum Twisting Force

The highest torque a rotating shaft or component can withstand without yielding or failing.

Rated Horsepower

The measure of an engine's or motor's horsepower as officially designated by the manufacturer.