## Aggregate Demand and Aggregate Supply AnalysisConsider schedule #1 in the aggregate demand and aggregate supply table given below. The equilibrium output and price level for the economy described on this schedule are indicated.### Table 10.1: Aggregate Demand and Aggregate Supply| Quantity of Aggregate Output Demanded | Price Level | Quantity of Aggregate Output Supplied ||---------------------------------------|-------------|----------------------------------------------------------|| | | #1 | #2 | #3 || $7.0 | 110 | $5.0 | $6.0 | $4.0 || 6.5 | 120 | 5.5 | 6.5 | 4.5 || 6.0 | 130 | 6.0 | 7.0 | 5.0 || 5.5 | 140 | 6.5 | 7.5 | 5.5 || 5.0 | 150 | 7.0 | 8.0 | 6.0 |### Determining EquilibriumThe equilibrium output and price level for the economy described in schedule #1 can be found by identifying the price level at which the quantity of aggregate output demanded equals the quantity of aggregate output supplied.Given these options:a. $6.0 and 130, respectively.b. $6.5 and 120, respectively.c. $5.0 and 150, respectively.d. $5.5 and 140, respectively.e. $7.0 and 110, respectively.The correct answer can be determined by looking at the table entries for schedule #1. The quantity of aggregate output demanded at the price level that matches the quantity of aggregate output supplied is the equilibrium.By analyzing the table:- When the price level is 130, the quantity of aggregate output demanded is $6.0, and the quantity of aggregate output supplied for schedule #1 is also $6.0.Thus, the equilibrium output and price level for the economy described in schedule #1 are $6.0 and 130, respectively.**Correct Answer: a. $6.0 and 130, respectively.**

Answer: Correct option: a ($6.0 and 130, respectively) Explanation: If we consider #1 of the…

Consider schedule #1 in the aggregate demand and aggregate supply table given below. The equilibrium output and price level for the economy described on this schedule are Table 10.1 Quantity of Quantity of Aggregate Output Price Aggregate Output Supplied Demanded Level #1 #2 #3 $7.0 110 $5.0 $6.0 $4.0 6.5 120 5.5 6.5 4.5 6.0 130 6.0 7.0 5.0 5.5 140 6.5 7.5 5.5 5.0 150 7.0 8.0 6.0 O a. $6.0 and 130, respectively. O b. $6.5 and 120, respectively. O c. $5.0 and 150, respectively. O d. $5.5 and 140, respectively. O e. $7.0 and 110, respectively.

Consider schedule #1 in the aggregate demand and aggregate supply table given below. The equilibrium output and price level for the economy described on this schedule are Table 10.1 Quantity of Quantity of Aggregate Output Price Aggregate Output Supplied Demanded Level #1 #2 #3 $7.0 110 $5.0 $6.0 $4.0 6.5 120 5.5 6.5 4.5 6.0 130 6.0 7.0 5.0 5.5 140 6.5 7.5 5.5 5.0 150 7.0 8.0 6.0 O a. $6.0 and 130, respectively. O b. $6.5 and 120, respectively. O c. $5.0 and 150, respectively. O d. $5.5 and 140, respectively. O e. $7.0 and 110, respectively.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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