Question 10 (1 point) The table gives the aggregate demand schedule, the short-run aggregate supply schedule, and the long-run aggregate supply schedule for an economy. Real GDP Real GDP supplied Real GDP supplied Price Level Demanded in Short Run in Long Run 100 550 350 500 105 500 400 500 110 450 450 500 115 400 500 500 The economy has a recessionary gap of $450 billion a recessionary gap of $50 billion neither a recessionary gap nor an inflationary gap an inflationary gap of $50 billion

Question 10 (1 point) The table gives the aggregate demand schedule, the short-run aggregate supply schedule, and the long-run aggregate supply schedule for an economy. Real GDP Real GDP supplied Real GDP supplied Price Level Demanded in Short Run in Long Run 100 550 350 500 105 500 400 500 110 450 450 500 115 400 500 500 The economy has a recessionary gap of $450 billion a recessionary gap of $50 billion neither a recessionary gap nor an inflationary gap an inflationary gap of $50 billion

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 42CTQ: On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because...

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4. Equilibrium The following table shows the real output demanded and supplied at various price levels in a hypothetical economy. Real Output Demanded (Billions of dollars) 10 20 30 50 80 Price Level (Index number) 160 120 80 40 20 Real Output Supplied (Billions of dollars) 85 80 70 50 20 On the following graph, use the blue points (circle symbol) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange points (square symbol) to plot the aggregate supply (AS) curve for the economy.
please draw graph specify endpoints thanks 1 The table below shows the aggregate demand for the economy of Itera. Its potential GDP (LAS) is $725. Price Index Aggregate Quantity Demanded 70 725 90 675 110 625 130 575 a. Draw the aggregate demand curve and the potential GDP (LAS) curve in the graphing area below. Plot only curve in the graphing area using the appropriate tool. Once all points have been plotted, click on the line (not tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. for the economy of Itera AS Tools 120 AD (900, 120) Potential GDP 110 100 AD2 90 80 70 400 500 600 700 800 900 Real GDP b. The equilibrium level of GDP is $ and the price index is c. There is a recessionary v gap in Itera of $ d. If aggregate demand in Itera were to increase by $150, draw the new (AD2) curve in the graphing area above. Remember to only the endpoints of the curve. e. The new equilibrium level of GDP is $ and the price index is f. Now there is…
1. How is the aggregate demand curve different from the demand curve for a single good, like hamburgers? 2. Why does the aggregate demand curve slope downward? 3. How does an increase in foreign income affect domestic aggregate expenditures and demand? 4. How does a decrease in foreign price levels affect domestic aggregate expenditures and demand? 5. How is the aggregate supply curve different from the supply curve for a single good, like pizza?
10. Great Depression In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Graph A Graph B LRAS Aggregate Supply Aggregate Demand Price Level LRAS Quantity of Output Price Level Aggregate Supply Aggregate Demand Quantity of Output
graph below shows the economy oOT Japan. Planned Aggregate Expenditures 2400- 2100 1800- 1500 1200 AE 900- 600 AE Y 300- Potential Output 00 200 tobd 200d 2400 40 Reset Real income (in dollars) a) What type of gap exists in this economy, and how big is that gap? (Select one) $ 0 b) By how much must government expenditures change to eliminate this gap? (Select one) $ 0 c) Demonstrate this graphically in the graph above. Real aggregate expenditures (in dollars)
Note: Line segments will automatically connect the points. PRICE LEVEL (Billions of dollars) 200 160 120 0 80 160 240 REAL GDP (Index numbers) The equilibrium price level is 320 400 Initial AD The change in government spending the multiplier effect. SRAS New AD ✓, and the equilibrium level of real output is Suppose that the government spending increases by $16 billion and the expenditure multiplier in this economy is 5. On the previous graph, use the purple points (diamond symbols) to illustrate the effect of the increase in government spending on the aggregate demand (New AD) curve. the equilibrium level of real output by . The price level increase
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QUESTION 1 Aggregate Demand (AD) Is drawn with price level, average price for everything in the economy relative to the base year price, (not the dollar price) on the vertical axis and Real GDP demanded on the horizontal axis. Use the numbers from the following table and calculate the Real GDP Demanded using expenditure approach of GDP, and plot all the points on the Aggregate Demand. Connect all the points to draw the aggregate demand. [Review Chapter 5 powerpoints, textbook and Internet source to find what numbers have tolbe added to get each of the points In the Aggregate Demand curve.] (国 Real GDP Demanded (AD): C+l+G+ (X-M) Real GDP Supplied: Ageregate Supply (AS) $680 Price Level 110 $400 $185 $150 $55 $50 115 390 180 150 50 50 720 120 380 175 150 45 50 750 125 370 170 150 40 50 780 130 360 165 150 35 50 810 8.
5. Macroeconomic equilibrium and the ranges of the aggregate supply curve The following graph shows the aggregate demand (AD₁) and aggregate supply (AS) curves for a hypothetical economy with full-employment output of $11 trillion. PRICE LEVEL (CPI) 130 125 120 115 110 105 100 95 90 8.0 8.5 9.0 AD₁ AS 10.0 10.5 11.0 9.5 REAL GDP (Trillions of dollars) 11.5 12.0 A The decrease in aggregate demand leads to a movement along the to and the equilibrium level of real GDP to AD₂ Macro Eq 2 ? Suppose the level of real GDP supplied by firms is $10.5 trillion and the price level is 105. In this case, the quantity of real GDP supplied is GDP demanded at a price level of 105, and firms will experience an unplanned producing output until the economy reaches macroeconomic equilibrium at a price level of the real in inventories. Firms will respond to the change in inventories by and real GDP of Suppose consumers and businesses become less optimistic about future economic conditions, causing the…
4. Draw the aggregate demand and aggregate supply graphs in a three-panel model: In the first graph, show aggregate demand on the graph and aggregate supply in the immediate short run. In the second graph, again show aggregate demand, but this time show aggregate supply in the short run. Finally, in the last panel, show aggregate demand and aggregate supply in the long-run. Be sure to label each axis and each curve in each graph. (Be careful not to leave this section too brief: to get a full score on it, you should write no less than two paragraphs on this topic alone. The graphs you prepare should be referred to in the paper as exhibits.)
60 + Import favorites How can you find the main idea of this graph? O O O A) Look at the labels on the graph. B) Read the title of the graph. C) Consider the format of the graph. D) Read the data in the graph. Federal Spending in Fiscal Year 2020 Social Security $1.1 Trillion Medicare $769 Billion Medicaid $458 Billion $345 Billion Defense $714 Billion Outlays $6.6 Trillion PPP $526 Billion Unemployment Recovery Compens S473 Billion S Nondefense 5914 on Other $968 Billion
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