Price Level ADO bc Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then: f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g, a shortage of real output would occur f represents a price level that would result in a surplus of real output of ac a surplus of real output of gh would occur
Price Level ADO bc Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then: f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g, a shortage of real output would occur f represents a price level that would result in a surplus of real output of ac a surplus of real output of gh would occur
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Price Level
6
ASO
ADO
AD₁
a b c
Real GDP
Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then:
f represents a price level that would result in a shortage of real output of ac
f represents a price level that would result in a surplus of real output of a
at any price level above g, a shortage of real output would occur
f represents a price level that would result in a surplus of real output of ac
a surplus of real output of gh would occur](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07f9640b-0ff6-4df4-a596-965b1dac8f75%2F81b27608-1584-4e5e-993e-8da6b218ee24%2Fcshxlng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Price Level
6
ASO
ADO
AD₁
a b c
Real GDP
Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then:
f represents a price level that would result in a shortage of real output of ac
f represents a price level that would result in a surplus of real output of a
at any price level above g, a shortage of real output would occur
f represents a price level that would result in a surplus of real output of ac
a surplus of real output of gh would occur
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