The Following Table Shows the Aggregate Demand and Aggregate Supply

question 103

Multiple Choice

The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.

-Refer to the above table.If the quantity of real domestic output demanded decreased by $500 and the quantity of real domestic output supplied increased by $500 at each price level,the new equilibrium price level and quantity of real domestic output would be:

• A) 150 and $1500.
• B) 150 and $2000.
• C) 200 and $2000.
• D) 250 and $2000.

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Definitions:

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.

Withdrawals

Sums of money withdrawn by the business owner(s) for private expenses.

General Journal

A basic accounting record used to keep track of all business transactions not recorded in specialized journals.

Account Titles & Descriptions

Names and explanations assigned to individual accounts in the financial statements, reflecting the nature and type of transaction.