real demestic outpout demanded (billions) price level (index value) real demestic output supplied (billions)

3000 350 9000

4000 300 8000

5000 250 7000

6000 200 6000

7000 150 5000

8000 100 4000

Refer to the table above. At the price level of 150, there will be a general:

A.

Surplus in the economy, and output supplied will decrease as the price level falls

B.

Shortage in the economy, and output demanded will decrease as the price level rises

C.

Surplus in the economy, and output supplied will increase as the price level rises

D.

Shortage in the economy, and output demanded will increase as the price level falls