Instructions: Enter your answers as a whole number. a. What is the level of real output in the short run if the price level unexpectedly rises from 100 to 125 because of an i aggregate demand? What happens if the price level unexpectedly falls from 100 to 75 because of a decrease in aggregate demand? b. What is the level of real output in the long run when the price level rises from 100 to 125?

Instructions: Enter your answers as a whole number. a. What is the level of real output in the short run if the price level unexpectedly rises from 100 to 125 because of an i aggregate demand? What happens if the price level unexpectedly falls from 100 to 75 because of a decrease in aggregate demand? b. What is the level of real output in the long run when the price level rises from 100 to 125?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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