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3 Return to question 10 points 02:34:47 The graph below shows, the aggregate demand and supply for the economy of Etrusca. a. Draw AD2 on the graph below assuming an increase of $60 in aggregate demand. Plot only the endpoints of the curve below. Your Graph Score: 0% Price index 140 130 120 110 100 90 90 80 200 240 280 320 360 400 440 480 520 560 Real GDP b. What is the new level of equilibrium GDP? $ 380 c. What is the new equilibrium price level? 55 AS AD AD2 d. How much is the reduction in GDP due to the crowding out effect? $ 120

3 Return to question 10 points 02:34:47 The graph below shows, the aggregate demand and supply for the economy of Etrusca. a. Draw AD2 on the graph below assuming an increase of $60 in aggregate demand. Plot only the endpoints of the curve below. Your Graph Score: 0% Price index 140 130 120 110 100 90 90 80 200 240 280 320 360 400 440 480 520 560 Real GDP b. What is the new level of equilibrium GDP? $ 380 c. What is the new equilibrium price level? 55 AS AD AD2 d. How much is the reduction in GDP due to the crowding out effect? $ 120

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3 Return to question 10 points 02:34:47 The graph below shows, the aggregate demand and supply for the economy of Etrusca. a. Draw AD2 on the graph below assuming an increase of $60 in aggregate demand. Plot only the endpoints of the curve below. Your Graph Score: 0% Price index 140 130 120 110 100 90 90 80 200 240 280 320 360 400 440 480 520 560 Real GDP b. What is the new level of equilibrium GDP? $ 380 c. What is the new equilibrium price level? 55 AS AD AD2 d. How much is the reduction in GDP due to the crowding out effect? $ 120
Transcribed Image Text:3 Return to question 10 points 02:34:47 The graph below shows, the aggregate demand and supply for the economy of Etrusca. a. Draw AD2 on the graph below assuming an increase of $60 in aggregate demand. Plot only the endpoints of the curve below. Your Graph Score: 0% Price index 140 130 120 110 100 90 90 80 200 240 280 320 360 400 440 480 520 560 Real GDP b. What is the new level of equilibrium GDP? $ 380 c. What is the new equilibrium price level? 55 AS AD AD2 d. How much is the reduction in GDP due to the crowding out effect? $ 120
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