-In the Above Figure,the Aggregate Demand Curve Is AD₂,so the Short-Run

question 214

Multiple Choice

-In the above figure,the aggregate demand curve is AD₂,so the short-run equilibrium level of real GDP is

• A) $13 trillion.
• B) $13.5 trillion.
• C) more than $13 and less than $13.5 trillion.
• D) None of the above answers is correct.

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Definitions:

Short-Run Aggregate-Supply

A variation in phrasing to describe the responsiveness of the quantity of goods and services produced by an economy to a change in price level in the short term.

Output

The total amount of goods and services produced by an economic system.

Price Level

An index of the average prices of goods and services in an economy over a given period of time, indicating the cost of living and inflation.

Price Level

A measure of the average price of goods and services in an economy at a given time, often used to discuss inflation or deflation.