table. LO12.5 Amount of Amount of Real GDP Price Level Real GDP Demanded, (Price Index) Supplied, Billions 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. What are the equilibrium price level and the equilib iun
table. LO12.5 Amount of Amount of Real GDP Price Level Real GDP Demanded, (Price Index) Supplied, Billions 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. What are the equilibrium price level and the equilib iun
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:3. Suppose that the aggregate demand and aggregate supply sched-
ules for a hypothetical economy are as shown in the following
table. LO12.5
Amount of
Amount of
Real GDP
Price Level
Real GDP
Demanded,
(Price
Index)
Supplied,
Billions
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. What are the equilibrium price level
and the equilibrium level of real output in this hypothetical
economy? Is the equilibrium real output also necessarily the
full-employment real output?
b. If the price level in this economy is 150, will quantity
demanded equal, exceed, or fall short of quantity supplied?
By what amount? If the price level is 250, will quantity
demanded equal, exceed, or fall short of quantity supplied?
5.
By what amount?
c. Suppose that buyers desire to purchase $200 billion of extra
real output at each price level. Sketch in the new aggregate
demand curve as AD,. What are the new equilibrium price
level and level of real output?
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