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The Accompanying Table Shows the Aggregate Demand and Aggregate Supply

Question 198

Multiple Choice

 Real Domestic Output  Demanded (in Billions)   Price Level (Index Value)   Real Domestic Output  Supplied (in Billions)  $3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Real Domestic Output } \\\text { Demanded (in Billions) }\end{array} & \text { Price Level (Index Value) } & \begin{array} { c } \text { Real Domestic Output } \\\text { Supplied (in Billions) }\end{array} \\\hline \$ 3,000 & 350 & \$ 9,000 \\\hline 4,000 & 300 & 8,000 \\\hline 5,000 & 250 & 7,000 \\\hline 6,000 & 200 & 6,000 \\\hline 7,000 & 150 & 5,000 \\\hline 8,000 & 100 & 4,000 \\\hline\end{array} The accompanying table shows the aggregate demand and aggregate supply schedules for a hypothetical economy. At the price level of 150, there will be a general


A) surplus in the economy, and output supplied will decrease as the price level falls.
B) shortage in the economy, and output demanded will decrease as the price level rises.
C) surplus in the economy, and output supplied will increase as the price level rises.
D) shortage in the economy, and output demanded will increase as the price level falls.

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