Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: Amount of Real Output Demanded Price Level (Index Value) Amount of Real Output Supplied $200 300 $500 $300 250 $450 $400 200 $400 $500 150 $300 $600 100 $200 Refer to the data. If the amount of real output demanded at each price level falls by $200, the equilibrium price level and equilibrium level of real domestic output will fall to: O 250 and $200, respectively. O 150 and $200, respectively. O 200 and $300, respectively. O 150 and $300, respectively.

Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: Amount of Real Output Demanded Price Level (Index Value) Amount of Real Output Supplied $200 300 $500 $300 250 $450 $400 200 $400 $500 150 $300 $600 100 $200 Refer to the data. If the amount of real output demanded at each price level falls by $200, the equilibrium price level and equilibrium level of real domestic output will fall to: O 250 and $200, respectively. O 150 and $200, respectively. O 200 and $300, respectively. O 150 and $300, respectively.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1) Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qg = 75 and Qs = 300) and that the demands for gold and silver are given by the following equations: PG = 975 – QG + 0.5Ps and Ps = 600 – Qs + 0.5PG. What are the equilibrium prices of gold and silver?
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1) https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/aggregate-demand-ap/v/aggregate-demand 2) https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/aggregate-demand-ap/v/shifts-in-aggregate-demand 3) https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/short-run-aggregate-supply-ap/v/short-run-aggregate-supply 4) https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/long-run-aggregate-supply-ap/v/long-run-aggregate-supply 5) https://www.youtube.com/watch?v=xP4y2m16NH8 please I need a short summaries of these videos.
3. Why the aggregate demand curve slopes downward The graph below shows the aggregate demand (AD) curve for a hypothetical economy. At point X, the quantity of output demanded is $500 billion, and the price level is 120. Moving up along the AD curve from point X to point Y, the quantity of output demanded falls to $300 billion, and the price level rises to 140. PRICE LEVEL 170 160 150 140 130 120 110 100 90 Y X AD (?
Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below? Price Level 150 140 130 120 110 100 90 80 70 60 0 5 10 15 Real GDP ($ billion) AS -AD-AS2 O A federal government increase in spending. O A general increase in energy and labor cost for businesses. O An increase in productivity. O A general decrease in labor cost for businesses. 20 25
The aggregate supply curve shows the relationship between the price level and the: O potential GDP in the economy. O total quantity of output that suppliers collectively produce. total quantity of output that buyers collectively plan to purchase. equilibrium GDP in the economy.
Price Level Aggregate Demand Aggregate Supply 200 10,000 4,000 300 9,000 6,000 400 8,000 8,000 500 7,000 9,000 600 6,000 9,500 700 5,000 9,800 800 4,000 9,900 The table above shows the initial aggregate supply and demand data for a country. If input prices rise and AS shifts to the left by 2,000 units at each price level, what is the new equilibrium output level? 8,000 O 2,000 7,000 O 6,000
Question 6 Which of the following characteristics is NOT consistent with an upward-sloping AS curve? O when forecasted future prices increase, the AS curve shifts upward. a rise in the firms' pricing power will lead to a rise in the aggregate price. the AS curve passes through a point that corresponds to the natural level of national income and stable price. O as inflation rises output growth falls
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Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: (18 points) Amount of Real GDP Demanded Price Amount of Real GDP Supplied $ 600 $500 $1200 $ 700 $400 $100O $ 800 $300 $ 800 $ 900 $200 $ 600 $1000 $100 $ 400 Use the above data to graph the aggregate supply and aggregate demand curves. What are the equilibrium price and equilibrium level of real GDP? When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.
$ Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below? fs Price Level 150 140 130 120 110 100 90 80 70 60 % 5 0 16 5 O A general increase in energy and labor cost for businesses. O A federal government increase in spending. t 6 10 15 Real GDP ($ billion) -AS-AD-AS2 2 fa lyi & 7 7 J * 20 8 8 num lk ( 25 (1¹) 9
When due to rise in price of a good, total expenditure on the good also rises, then demand is _________