Refer to Figure 5-13. The efficient equilibrium price of gasoline ...

[beccaep]

Refer to Figure 5-13. The efficient equilibrium price of gasoline is ________ per gallon.
 
  A) 3.00 B) 3.75 C) 4.25 D) 5.00

Question 2

Explain for each event whether it changes the quantity of real GDP demanded or aggregate demand in the United States.
 
  What will be an ideal response?

[Jody Vaughn]

Answer to Question 1

A

Answer to Question 2

 U.S exports to the European Union boom.
The increase in U.S. exports increases U.S. aggregate demand.
 U.S. firms build new gas-fuel utilities.
Building new plants in the United States increases U.S. aggregate supply, which brings a change in the quantity of real GDP demanded. Building the new plants also increases investment, which increases aggregate demand.
 U.S. inflation rate is expected to rise next year.
The increase in the expected inflation rate increases aggregate demand.
 The U.S. price level rises.
The rise in the U.S. price level leads to a change in the quantity of real GDP demanded.

[beccaep]

Thank you

[Jody Vaughn]

Happy to help you