Table 52 Shows the Aggregate Demand and Supply Schedules for the the Economy

question 14

Multiple Choice

Table 5.2 shows the aggregate demand and supply schedules for the economy of Adana.

-Refer to Table 5.2 to answer this question.If the aggregate quantity demanded falls by $100 at every price level,what will be the new equilibrium price level and real output,respectively?

• A)100 and $550.
• B)105 and $650.
• C)110 and $650.
• D)115 and $500.

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Definitions:

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment and inflation rates in an economy over the short term, suggesting a trade-off between the two.

Price of Oil

The cost per barrel of crude oil as determined by global markets, influenced by factors such as supply and demand, geopolitical events, and economic indicators.

Unemployment Rate

The share of the employment pool that is currently without work yet is actively trying to find a job.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.