The table below shows the initial aggregate demand, short-run, and long-run aggregate supply schedules - Aggregate demand (billion $) Aggregate Supply (billion Long run Aggregate supply Price level $) (billion $) 80 1600 400 800 90 1400 600 800 100 1200 800 800 110 1000 1000 800 120 800 1200 800 130 600 1400 800 140 400 1600 800 a. Draw the AD, SAS, and LAS curves, show the equilibrium level of real GDP and price level. b. What is the value of Potential GDP? C. What is the value of short run macroeconomics equilibrium GDP ?
The table below shows the initial aggregate demand, short-run, and long-run aggregate supply schedules - Aggregate demand (billion $) Aggregate Supply (billion Long run Aggregate supply Price level $) (billion $) 80 1600 400 800 90 1400 600 800 100 1200 800 800 110 1000 1000 800 120 800 1200 800 130 600 1400 800 140 400 1600 800 a. Draw the AD, SAS, and LAS curves, show the equilibrium level of real GDP and price level. b. What is the value of Potential GDP? C. What is the value of short run macroeconomics equilibrium GDP ?
Chapter14: Aggregate Demand And Supply
Section: Chapter Questions
Problem 9SQP
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