Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Level 110 Price Level 110 Price Level Real GDP Real GDP Real GDP 235 285 100 210 100 235 100 260 100 235 95 235 95 235 100 260 90 235 90 210 100 285 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? (Click to select) ✓ (Click to select) ✓ (Click to select) ✓ b. Assuming no change in hours of work, if real output per hour of work decreases by 5 percent, what will be the new levels of real GDP in the right column of B? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: The short run? The long run?

Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Level 110 Price Level 110 Price Level Real GDP Real GDP Real GDP 235 285 100 210 100 235 100 260 100 235 95 235 95 235 100 260 90 235 90 210 100 285 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? (Click to select) ✓ (Click to select) ✓ (Click to select) ✓ b. Assuming no change in hours of work, if real output per hour of work decreases by 5 percent, what will be the new levels of real GDP in the right column of B? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: The short run? The long run?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government

Section: Chapter Questions

Problem 2WNG

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Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Price Price Level Real GDP Level Real GDP Level Real GDP 110 230 110 280 100 205 100 230 100 255 100 230 95 230 95 230 100 255 90 230 90 205 100 280 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? (Click to select) v The short run? (Click to select) v The long run? (Click to select) v b. Assuming no change in hours of work, if real output per hour of work increases by 15 percent, what will be the new levels of real GDP in the right column of B? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110:| At a price level of 100: At a price level of 95: At a price level of 90: Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)
Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (А) (В) (C) Price Price Price Level Real GDP Level Real GDP Level Real GDP 110 285 100 210 110 235 100 260 100 235 100 235 95 235 100 260 95 235 90 210 100 285 90 235 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? |(Click to select) V The short run? (Click to select) ♥ The long run? (Click to select) V b. Assuming no change in hours of work, if real output per hour of work decreases by 10 percent, what will be the new levels of real GDP in the right column of A? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: At a price level of 90: Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: Amount of Real GDP Demanded $ 600 $ 700 $ 800 $ 900 $1000 Price Amount of Real GDP Supplied $500 $1200 $400 $1000 $300 $200 $100 $ 800 $ 600 $ 400 a. Use the above data to graph the aggregate supply and aggregate demand curves. b. What are the equilibrium price and equilibrium level of real GDP? C. When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.
In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Shortrun aggregate supply longrun aggregate supply 30 $1395 $1125 $1200 40 $1330 $1150 $1200 50 $1265 $1175 $1200 60 $1200 $1200 $1200 70 $1135 $1225 $1200 80 $1070 $1250 $1200 90 $1005 $1275 $1200 If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000? Cyclical unemployment/Inflationary pressures
In 2006, the economy of Singsville had an aggregate demand and aggregate supply according to the following schedule:Price level Aggregate Demand Short-Run Aggregate Supply100 $1445 $1085110 $1380 $1140120 $1315 $1195130 $1250 $1250140 $1185 $1305150 $1120 $1360160 $1055 $1415 What was the equilibrium price level in Singsville in 2006?
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Amount of Real GDP Demanded, Real GDP Supplied, Billions Price Level Billions (Price Index) $100 300 $450 $200 250 400 $300 200 300 $400 150 200 $500 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Instructions: Enter your answers as a whole number. a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical…
Connect assignment O es Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded (Aggregate Demand) Output Supplied (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 100 Aggregate Supply and Demand 200 $800 100 900 900 900 900 90 900 900 700 Real Output (quantity per year) Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ Tools AD D AS e b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have…
The accompanying table shows the aggregate demand and aggregate supply schedules for a hypothetical economy. Real Domestic Output Supplied (in Billions) $9,000 Price Level (Index Value) Real Domestic Output Demanded (in Billions) $3,000 4,000 5,000 350 8,000 5,000 7,000 300 250 6,000 200 7,000 150 5,000 8,000 100 4,000 a. What is the equilibrium price and output levels? b. If the price level is 350, what will happen in the economy? why? (.
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Real GDP Demanded, Amount of Real GDP Supplied, Billions Price Level1 Billions (Price Index) $ 100 $ 200 $ 300 $ 400 $ 500 300 $ 450 250 400 200 300 150 200 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Price level
6. Nonprice-level determinants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy. Specifically, aggregate supply shifts to the left from AS₁ to AS₂, causing the quantity of output supplied at a price level of 125 to fall from $250 billion to $150 billion. PRICE LEVEL (CPI) 200 175 150 100 50 25 0 0 50 AS2 AS₁ 100 150 200 250 300 REAL GDP (Billions of dollars) 350 400
In 2004, the economy of Minitown had an aggregate demand and aggregate supply according to the following schedule: PRice level Aggregate Demand Short-run Aggregate supply Long run aggregate supply 100 $1625 $1205 $1370 110 $1550 $1270 $1370 120 $1475 $1335 $1370 130 $1400 $1400 $1370 140 $1325 $1465 $1370 150 $1250 $1530 $1370 160 $1175 $1595 $1370 What was Minitown’s short-run equilibrium output in 2004?
Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $280, and that data set A represents the relevant aggregate supply schedule for the economy. (A) Price Level 100 100 100 100 Real GDP 205 230 255 280 (B) Price Level 110 100 95 90 Real GDP 230 230 230 230 (C) Price Level 110 100 95 90 Real GDP 280 255 230 205 a. What must be the current amount of real output demanded at the 100 price level? Real output demanded = $ b. If the amount of output demanded declines by $25 at the 100 price level shown in A, what will be the new equilibrium real GDP? The new equilibrium level of real GDP = $ In business cycle terminology, what would economists call this change in real GDP? (Click to select)