It Shows the Aggregate Demand and Aggregate Supply Schedule for a Hypothetical

question 121

Multiple Choice

It shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Refer to the table above. 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:

Adrenal Glands

A pair of endocrine glands that release hormones that prepare the body for emergencies and stressful situations and also release corticoids and small amounts of the sex hormones.

Pituitary Gland

The endocrine gland located in the brain that releases hormones that activate other endocrine glands as well as growth hormone; often called the “master gland.”

General Adaptation Syndrome (GAS)

A theoretical model describing the body's short-term and long-term reactions to stress.

Selye's GAS

General Adaptation Syndrome, a theory introduced by Hans Selye, describing the body's short-term and long-term reactions to stress.