Equilibrium Price Level and GDP Calculation

What will equilibrium price level and GDP be?

Select one: A. 170 and 3,000 B. 170 and 3,600 C. 150 and 3,000 D. 150 and 2,600

The correct option is A. 170 and 3,000.

So, the equilibrium price level is 170 and GDP is 3,000. In the given aggregate demand and supply schedules, the equilibrium price level and GDP occur at the point where the aggregate quantity demanded is equal to the aggregate quantity supplied.

Looking at the given data, we can see that at a price index of 170, the aggregate quantity demanded is 3000 and the aggregate quantity supplied is also 3000. This means that at a price level of 170, the quantity of goods and services demanded by consumers is equal to the quantity of goods and services supplied by producers.

Therefore, the equilibrium price level is 170 and the equilibrium GDP is 3000. This shows the point where the economy is in equilibrium, with no excess demand or supply in the market.

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