The following table shows the aggregate supply and demand data for a country.
What is the equilibrium price level?
a. 200
b. 400
c. 500
d. 800
b. 400
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A depreciation of one's currency means that:
a. the country's exports will become more expensive. b. the country's imports will become more expensive. c. the country's imports will become less expensive. d. it now requires less of this currency in exchange for one unit of another currency. e. it now requires more units of other currencies in exchange for one unit of this currency.
A long run equilibrium: a. Will be at a greater output level than the natural level of real output. b. Will be at the natural level of real output
c. Will be at a smaller output level than the natural level of real output. d. Long-run equilibrium could be at any of the above levels of output.
Refer to the graph shown. When price rises from $30 to $40:
A. lost revenue is represented by areas C and E and gained revenue is represented by area A. B. gained revenue is represented by areas B, C, D, and E and lost revenue is represented by area A. C. gained revenue is represented by areas C and E and lost revenue is represented by area A. D. lost revenue is represented by areas B, C, D, and E and gained revenue is represented by area A.
Without more information, the supply and demand model cannot predict the effect on price of:
A. a simultaneous decrease in quantity demanded and increase in quantity supplied. B. a simultaneous decrease in demand and increase in supply. C. a simultaneous increase in demand and increase in supply. D. a simultaneous increase in demand and decrease in supply.