Dear Expert, the question that is provided as an image is one question. If there the questions necessitate you to interact with the graph, kindly make your work clear and apparent as to how I should accordingly interact with it. I have provided all options you would expect to see in the form of an annotation. Several tutors have been answering these questions wrongly so kindly consider all aspects of the question. Thank you. 2. EquilibriumThe following table shows the real output demanded and supplied at various price levels in a hypothetical economy.Real Output DemandedPrice LevelReal Output Supplied (Billions of dollars)(Billions of dollars)(Index number)(Billions of dollars)108080156070254055353035702010On the following graph, use the blue points (circle symbols) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orangepoints (square symbols) to plot the short-run aggregate supply (SRAS) curve for the economy.I Note: Line segments will automatically connect the points.100Initial AD8060SRASNew AD2020406080100REAL GDP (Index numbers)30. 20. 80, 60, 40$55bil, 25bil, 15bil, 40bil, 35bil?The equilibrium price level isand the equilibrium level of real output isSuppose that the government spending increases by $5 billion and the expenditure multiplier in this economy is 6.On the previous graph, use the purple points (diamond symbols) to illustrate the effect of the increase in government spending on the aggregatedemand (New AD) curve.The change in government spendingvthe equilibrium level of real output by20. 5. 4. 30, 10InbreaseAQcrea se?PRICE LEVEL (Billions of dollam)

Based on the schedule for the real demand and real output supplied, we can easily draw a graph. The…

Answered: 30, 20. 80. 60. 40 55bil, 25bil, 15bil,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Dear Expert, the question that is provided as an image is one question.

If there the questions necessitate you to interact with the graph, kindly make your work clear and apparent as to how I should accordingly interact with it.

I have provided all options you would expect to see in the form of an annotation.

Several tutors have been answering these questions wrongly so kindly consider all aspects of the question.

Thank you.

2. Equilibrium
The following table shows the real output demanded and supplied at various price levels in a hypothetical economy.
Real Output Demanded
Price Level
Real Output Supplied (Billions of dollars)
(Billions of dollars)
(Index number)
(Billions of dollars)
10
80
80
15
60
70
25
40
55
35
30
35
70
20
10
On the following graph, use the blue points (circle symbols) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange
points (square symbols) to plot the short-run aggregate supply (SRAS) curve for the economy.
I Note: Line segments will automatically connect the points.
100
Initial AD
80
60
SRAS
New AD
20
20
40
60
80
100
REAL GDP (Index numbers)
30. 20. 80, 60, 40
$55bil, 25bil, 15bil, 40bil, 35bil?
The equilibrium price level is
and the equilibrium level of real output is
Suppose that the government spending increases by $5 billion and the expenditure multiplier in this economy is 6.
On the previous graph, use the purple points (diamond symbols) to illustrate the effect of the increase in government spending on the aggregate
demand (New AD) curve.
The change in government spending
v
the equilibrium level of real output by
20. 5. 4. 30, 10
Inbrease
AQcrea se?
PRICE LEVEL (Billions of dollam)

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