Question 1
Refer to the information provided in Figure 26.2 below to answer the question(s) that follow.


Refer to Figure 26.2. Between the output levels of $300 billion and $600 billion, the relationship between the price level and output is
◦ negative.
◦ positive.
◦ constant.
◦ There is no relationship between the price level and output.
Question 2
Refer to the information provided in Figure 26.2 below to answer the question(s) that follow.


Refer to Figure 26.2. This economy reaches capacity at
◦ $300 billion.
◦ $600 billion.
◦ $900 billion.
◦ an output level that is indeterminate from this information because aggregate demand is not given.