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Using Figure 8

Question 7

Multiple Choice

Using Figure 8.5,if the equilibrium real output is Q<sub>2</sub> then A) Aggregate demand must be AD<sub>1</sub>. B) Aggregate demand could be either AD<sub>1</sub> or AD<sub>2</sub> depending on the level of aggregate supply. C) The equilibrium price level is P<sub>2</sub>. D) Aggregate supply must be AS<sub>1</sub> and the equilibrium price level must be P<sub>1</sub>. Using Figure 8.5,if the equilibrium real output is Q2 then


A) Aggregate demand must be AD1.
B) Aggregate demand could be either AD1 or AD2 depending on the level of aggregate supply.
C) The equilibrium price level is P2.
D) Aggregate supply must be AS1 and the equilibrium price level must be P1.

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