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The Table Gives the Aggregate Demand and Aggregate Supply Schedules

Question 87

Multiple Choice

 Price level  (GDP deflator)   Real GDP demanded  (trillions of 2005  dollars)   Real GDP supplied  (trillions of 2005  dollars)  80102909410086110771206813049\begin{array} { c c c } \begin{array} { c } \text { Price level } \\\text { (GDP deflator) }\end{array} & \begin{array} { c } \text { Real GDP demanded } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Real GDP supplied } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} \\\hline 80 & 10 & 2 \\90 & 9 & 4 \\100 & 8 & 6 \\110 & 7 & 7 \\120 & 6 & 8 \\130 & 4 & 9 \\\hline\end{array}
The table gives the aggregate demand and aggregate supply schedules for a nation.
-If the price level is 120 then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________.


A) greater; rises
B) greater; falls
C) less; rises
D) less; falls
E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.

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