The Table Gives the Aggregate Demand and Aggregate Supply Schedules

question 137

Multiple Choice

$$\begin{array} { c c c } \begin{array} { c } \text { Price level } \\\text { (GDP deflator) }\end{array} & \begin{array} { c } \text { Real GDP demanded } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Real GDP supplied } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} \\\hline 80 & 10 & 2 \\90 & 9 & 4 \\100 & 8 & 6 \\110 & 7 & 7 \\120 & 6 & 8 \\130 & 4 & 9 \\\hline\end{array}$$
The table gives the aggregate demand and aggregate supply schedules for a nation.
-The equilibrium price level is

• A)130.
• B)120.
• C)110.
• D)100.
• E)90.

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Definitions:

Consumer Surplus

The contrast between what buyers are willing to offer for a good or service and the amount they actually spend.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to acquire it.

Cell Phone

A portable telephone that uses wireless technology to send and receive calls and data.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at different prices.