Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Solve it correctly
Price level and Real GDP
![Use the aggregate supply (AS) curve and aggregate demand (AD) curve below to determine the equilibrium price level and
equilibrium real GDP for this economy.
140
130
AS
120
110
100
Price Level (base year = 100)
Provide your answer below:
50
100
150
Real GDP (in billions)
200
AD
250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14883e3d-a3b9-4971-b1ba-d6facc0e6986%2F77a628a6-fd26-4ab7-9e2e-4048262fcf4d%2Frnh8d6x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the aggregate supply (AS) curve and aggregate demand (AD) curve below to determine the equilibrium price level and
equilibrium real GDP for this economy.
140
130
AS
120
110
100
Price Level (base year = 100)
Provide your answer below:
50
100
150
Real GDP (in billions)
200
AD
250
![Provide your answer below:
Price Level: 116 Real GDP =
120 billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14883e3d-a3b9-4971-b1ba-d6facc0e6986%2F77a628a6-fd26-4ab7-9e2e-4048262fcf4d%2Fi11qzm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Provide your answer below:
Price Level: 116 Real GDP =
120 billion
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