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A-Level Economics · AD/AS equilibrium diagram question

The price level is stuck at P₂ = 8. Which point shows the real output firms are willing to SUPPLY?

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The diagram

The answer

Point H. At price level 8, read ACROSS to AS, then down: firms want to produce 8. Output supplied lives on the AS curve: across from 8 to point H, then down — 8. Output demanded lives on AD, at point G — 2. Two curves, two readings, never mix them up.

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This is one of 6 questions on the ad/as equilibrium diagram — every corner lettered, every wrong answer diagnosed.

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