demanded equal, exceed, or fall short of quantity supplied? llowing L012.4 c. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. Sketch in the new aggregate By what amount? demand curve as AD,. What are the new equilibriumsate Real GDP level and level of real output? 4. Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to pro- 225 225 duce that output: LO12.4 225 Real GDP 225 Input Quantity 150.0 $400 in the t run? 112.5 300 75.0 200 ut per a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per- unit cost of production? In what direction would the $1 increase in input price push the economy's aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output? d. Suppose that the increase in input price does not occur bul, instead, that productivity increases by 100 percent. What would be the new per-unit cost of production? What effect e new e new they apply e fol- of would this change in per-unit production cost have on the shift of aggregate supply have on the price level and the economy's ággregate supply curve? What effect would this level of real output? 5. Refer to the data in the table that accompanies problem 2. Suppose that the present equilibrium price level and level of real GDP are 100 and $225, and that data set B represents the and rice relevant aggregate By on of extra ng real output at each price level. Sketch in the new aggregate 12.4 c. Suppose that buyers de demand curve as AD,. What are the new equilibrium price 4. Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to pro- al level and level of real output? duce that output: LO12.4 Real GDP Input Quantity $400 150.0 300 he n? 112.5 75.0 200 er a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per- unit cost of production? In what direction would the $1 increase in input price push the sconomy's aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output? d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 100 percent. What would be the new per-unit cost of production? What effect would this change in per-unit production cost have on the y economy's aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the 5. Refer to the data in the table that accompanies problem 2. Suppose that the present equilibrium price level and level of level of real output? Tear GDP are 100 and $225, and that data set B represents te relevant aggregate supply schedule for the economy. a. What must be the cur L012.6