Question

The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. If the quantity of real domestic output demanded decreased by $500 and the quantity of real domestic output supplied increased by $500 at each price level, the new equilibrium price level and quantity of real domestic output would be

Real Domestic Output Demanded (in Billions)	Price Level (Index Value)	Real Domestic Output Supplied
$500	350	$3,500
1,000	300	3,000
1,500	250	2,500
2,000	200	2,000
2,500	150	1,500
3,000	100	1,000

A.150 and $1,500.
B. 150 and $2,000
C.200 and $2,000.
D.250 and $2,000.

Answer 1

Ans: B ) 150 and $2,000

Explanation:

			After Change
Real domestic output Demanded ( in Billions)	Price Level ( Index Value)	Real Domestic Output Suplied	Real domestic output Demanded ( in Billions)	Real Domestic Output Suplied
500	350	3500	0	4000
1000	300	3000	500	3500
1500	250	2500	1000	3000
2000	200	2000	1500	2500
2500	150	1500	2000	2000
3000	100	1000	2500	1500

After change in Real domestic output demanded and supplied;

The equilibrium price = 150

Real domestic output demanded and supplied = 2000