Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 16

At price level 92:
A) a GDP surplus of $12 billion occurs that drives the price level up to 100.
B) a GDP shortage of $12 billion occurs that drives the price level up to 100.
C) the aggregate amount of real GDP demanded is less than the aggregate amount of GDP supplied.
D) the economy is operating beyond its capacity to produce.