Use the Following to Answer Question 7

question 90

Multiple Choice

Use the following to answer question 7:
Figure: Aggregate Demand
-(Figure: Aggregate Demand) Refer to Figure: Aggregate Demand. The quantity of output demanded if the price level is 120 is:

• A) $9 trillion.
• B) $10 trillion.
• C) $11 trillion.
• D) $12 trillion.

---

Definitions:

Base Year

A specific year against which economic growth is measured, serving as a benchmark for real value comparisons over time.

Price Indexes

Price indexes are statistical measures that reflect the average change in prices over time of a basket of goods and services, used to gauge inflation or deflation in an economy.

Nominal GDP

The total value, in current market prices, of all the final goods and services generated within a country's borders over a certain time period.

Real GDP

Real GDP, which adjusts for price changes to offer a true measure of an economy's overall size and its growth trajectory.