-If the Amount of Real Output Demanded at Each Price

question 20

Multiple Choice

$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Amount of Real } \\\text { Output Demanded }\end{array} & \begin{array} { c } \text { Price Level } \\\text { (index value) }\end{array} & \begin{array} { c } \text { Amount of Real } \\\text { Output Supplied }\end{array} \\\hline \$ 200 & 300 & \$ 475 \\\hline 300 & 250 & 450 \\\hline 400 & 200 & 400 \\\hline 500 & 150 & 300 \\\hline 600 & 100 & 100 \\\hline\end{array}$
-If the amount of real output demanded at each price level falls by $200,the equilibrium price level and equilibrium level of real output will fall to:

• A)250 and $200, respectively
• B)200 and $300, respectively
• C)150 and $300, respectively
• D)150 and $200, respectively
• E)300 and $275, respectively

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Definitions:

Leon Festinger

An American social psychologist renowned for developing the theory of cognitive dissonance, which describes the psychological discomfort resulting from holding contradictory beliefs or attitudes.

Theory

A general principle or set of principles proposed to explain how a number of separate facts are related.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, values, or ideas simultaneously.

Inconsistencies

Occurrences of being in conflict or not being consistent in thoughts, behaviors, or actions.