AS AS AD AD 100 200 300 400 Real Output billions of dollars

AS AS, AD AD 100 200 300 400 Real Output (billions of dollars per year) Figure 8.3 Aggregate Supply and Demand Macro equilibrium is established at which price level, given AD1 and AS1 in Figure 8.3? O P3. P4 Pl. P2

Solution

Question:- macro equilibrium is established at which price level given AD1 and AS1 in figure 8.3

Answer:- P2

Reason:- Thee intersection of AD1 and AS1 represents the equilibrium state which is at rice P2