Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Supplied (Aggregate Supply) $800 100 Price Leve1 Output Demanded (Aggregate Demand) 800 $700 100

Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Supplied (Aggregate Supply) $800 100 Price Leve1 Output Demanded (Aggregate Demand) 800 $700 100

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 11E

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Question

what is the equilibrium price level?

Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph.
Output Supplied (Aggregate Supply)
$800
100
Price Leve1
Output Demanded (Aggregate Demand)
800
$700
100

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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