A line graph showing aggregate supply and demand." A graph showing the interaction of supply and demand. The x-axis is labeled Real Output and is marked Q1 through Q7 at equal intervals. The y-axis is labeled Price Level and is market P1 through P5 at equal intervals. The line labeled supply begins below Q1 and P1. It then curves up and out. At Q1, it is below the P1 price level. At Q2, it is at the P1. At Q3 it is between P1 and P2. At Q4, it is at P2. At Q5 it is between P2 and P3. At Q6, it is between P3 and P4. At Q7, it is between P4 and P5. The line labeled aggregate demand begins between Q1 and Q2 and above P5. It then curves down and out. At Q2, it is between P4 and P5. At Q3, it is at P3. At Q4, it is at P2. At Q5 it is between P1 and P2. At Q6, it is below P1." Refer to the figure. At which of the following price levels would a surplus occur? Multiple Choice P3 and P4 P2 and P3 P1 P2, but not P3