The Table Gives the Aggregate Demand and Aggregate Supply Schedules

question 156

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.
-Equilibrium real GDP is

• A)$10 trillion.
• B)$9 trillion.
• C)$8 trillion.
• D)$7 trillion.
• E)$6 trillion.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, defined as the percentage change in quantity demanded divided by the percentage change in price.

Linear

In mathematics, linear refers to a relationship or function that can be graphically represented as a straight line, indicating a constant rate of change.

Airplane Tickets

Documents or electronic vouchers that permit a person to travel on an airplane from one place to another.

Revenue-Maximizing Price

The price level at which a company can sell its product to generate the maximum possible revenue, considering factors like demand elasticity.