In 1997, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule:| Price level | Aggregate Demand | Short-Run Aggregate Supply | Long-Run Aggregate Supply ||-------------|------------------|---------------------------|--------------------------|| 40 | $1495.00 | $1105.00 | $1400.00 || 50 | $1430.00 | $1170.00 | $1400.00 || 60 | $1365.00 | $1235.00 | $1400.00 || 70 | $1300.00 | $1300.00 | $1400.00 || 80 | $1235.00 | $1365.00 | $1400.00 || 90 | $1170.00 | $1430.00 | $1400.00 || 100 | $1105.00 | $1495.00 | $1400.00 |**Explanation:**- **Price Level:** This column represents different levels of overall price in the economy.- **Aggregate Demand:** This column shows the total demand for goods and services at each price level.- **Short-Run Aggregate Supply:** This column indicates the total production at each price level in the short run.- **Long-Run Aggregate Supply:** This column gives the total production possible in the long run, which remains constant at $1400.00 across all price levels.**Questions:**1. What was Aptonville’s short-run equilibrium output in 1997? - Answer: $1300.00 (This is where aggregate demand equals short-run aggregate supply at the price level of 70).2. If Aptonville cut taxes, how would short-run equilibrium quantity change? - Options: Increase or Decrease - Likely to Increase (A tax cut generally boosts aggregate demand, shifting the curve rightward, leading to a higher equilibrium output in the short run).

In 1997, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule: Price level_Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate Supply 40 $1105.00 $1400.00 50 $1170.00 $1400.00 60 $1235.00 $1400.00 70 $1300.00 $1400.00 80 $1365.00 $1400.00 90 $1430.00 $1400.00 100 $1495.00 $1400.00 $1495.00 $1430.00 $1365.00 $1300.00 $1235.00 $1170.00 $1105.00 What was Aptonville's short-run equilibrium output in 1997? $|| If Aptonville cut taxes, how would short-run equilibrium quantity change? Increase ODecrease

In 1997, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule: Price level_Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate Supply 40 $1105.00 $1400.00 50 $1170.00 $1400.00 60 $1235.00 $1400.00 70 $1300.00 $1400.00 80 $1365.00 $1400.00 90 $1430.00 $1400.00 100 $1495.00 $1400.00 $1495.00 $1430.00 $1365.00 $1300.00 $1235.00 $1170.00 $1105.00 What was Aptonville's short-run equilibrium output in 1997? $|| If Aptonville cut taxes, how would short-run equilibrium quantity change? Increase ODecrease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The economy is in long run equilibrium. Congress’s passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply aggregate supply in short run? And what happens in long run, and long run equilibrium price level and output? Explicitly state what happens to equilibrium price level and output in both short run and long run and how economy corrects from short run to long run.
State whether the following statement is true or false Perfectly elastic aggregate supply means aggregate supply adjusts its up to all level of aggregate demand!!!
Due to a shift in the aggregate supply curve output and price level move in __________ directions: either output increases and the price level decreases or output decreases and the price level increases.
e. In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?
Imagine the price level in an economy changes from 250 to 225. We know that prices in the economy have Question 3 options: a) increased and aggregate demand decreased b) increased and aggregate quantity demand decreased c) fallen and aggregate quantity demanded increased d) fallen and aggregate demand increased
In 2014, the economy of Greatstown had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregated Demand Short-run Aggregate Supply Long-run aggregate supply 30 $1455 $1275 $1400 40 $1420 $1300 $1400 50 $1385 $1325 $1400 60 $1350 $1350 $1400 70 $1315 $1375 $1400 80 $1280 $1400 $1400 90 $1245 $1425 $1400 Calculate Greatstown’s output gap.
om the information provided, determine whether you are given an Aggregate Supply or Aggregate Demand Schedule and, if Aggregate Supply, the me frame associated with the price level and output. HINT: You may want to plot out the points on a graph. Price Level Output (in billions) $565 561 558 555 550 124 123 122 121 120
In 2009, the economy of Greatstown had an aggregate demand and aggregate supply according to the following schedule: Price level Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate 60 $1175 $1350 70 $1250 $1350 80 $1325 $1350 90 $1400 $1350 100 $1475 $1350 110 $1550 $1350 120 $1625 $1350 $1475 $1450 $1425 $1400 $1375 $1350 $1325 What was Greatstown's short-run equilibrium output in 2009? Is Greatstown most likely experiencing high cyclical unemployment or inflation pressures?
The table below presents information on aggregate demand and aggregate supply schedules in the country of Microtania in 2005. Price level Schedule A Schedule B Schedule C $1685 $1415 $1625 $1640 $1460 $1625 $1595 $1505 $1625 $1550 $1550 $1625 $1505 $1595 $1625 $1460 $1640 $1625 $1415 $1685 $1625 90 100 110 120 130 140 150 Which best represents the aggregate supply curve that is emphasized in the neoclassical economic perspective? OSchedule A OSchedule B OSchedule C
A9
An increase in the price of an imported resource will cause, Group of answer choices: The aggregate supply curve to remain the same. The Aggregate supply curve to shift to the right The Aggregate supply curve to shift to the left a movement along the Aggregate supply curve The economy to operate in the long-run
Economics