Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Amount of Real GDP Demanded, Price Level Real GDP Supplied, Billions (Price Index) Billions $100 300 $450 $200 250 400 $300 200 300 $400 150 200 $500 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Instructions: Enter your answers as a whole number. a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Equilibrium price level = Equilibrium level of real output = $ billion Is the equilibrium real output also necessarily the full-employment real output? (Click to select) Price level
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Amount of Real GDP Demanded, Price Level Real GDP Supplied, Billions (Price Index) Billions $100 300 $450 $200 250 400 $300 200 300 $400 150 200 $500 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Instructions: Enter your answers as a whole number. a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Equilibrium price level = Equilibrium level of real output = $ billion Is the equilibrium real output also necessarily the full-employment real output? (Click to select) Price level
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter26: The Neoclassical Perspective
Section: Chapter Questions
Problem 21P: Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand...
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