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 = $|billionIs the equilibrium real output also necessarily the full-employment real output?(Click to select) vb. If the price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied?(Click to select) vBy what amount?$| billionIf the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied?(Click to select) vBy what amount?| billionc. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. What are the new equilibrium pricelevel and level of real output?Equilibrium price level =Equilibrium level of real output = $billion Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table.Amount ofReal GDP Demanded,Amount ofReal GDP Supplied,BillionsPrice Level1Billions(Price Index)$ 100$ 200$ 300$ 400$ 500300$ 450250400200300150200100100a. 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 totalfor each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' toindicate the equilibrium price level and the equilibrium level of real output.350Tools300ADAS250200Eq15010050100 200 300 400 500 600 700Real domestic output (billions of dollars)Price level

Answered: Image /qna-images/answer/96838f4d-3a21-4e15-a0dc-ac4d5db72573.jpg

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) b. If the price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied? (Click to select) By what amount? $ |billion If the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied? (Click to select) By what amount? $ billion c. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. What are the new equilibrium price level and level of real output? Equilibrium price level = Equilibrium level of real output = $ billion %3!

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) b. If the price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied? (Click to select) By what amount? $ |billion If the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied? (Click to select) By what amount? $ billion c. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. What are the new equilibrium price level and level of real output? Equilibrium price level = Equilibrium level of real output = $ billion %3!

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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Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: Amount of Real GDP Demanded $ 600 $ 700 $ 800 $ 900 $1000 Price Amount of Real GDP Supplied $500 $1200 $400 $1000 $300 $200 $100 $ 800 $ 600 $ 400 a. Use the above data to graph the aggregate supply and aggregate demand curves. b. What are the equilibrium price and equilibrium level of real GDP? C. When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.
Amount of Real GDP Demanded, Billions $100 $ 200 $300 $ 400 $ 500 Price level 350 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. 300 250 200 150 100 50 Price Level (Price Index) 300 250 200 150 100 Amount of Real GDP Supplied, Billions $ 450 400 300 200 100 100 200 300 400 500 600 700 Real domestic output (billions of dollars) bition Tools AD Eq AS 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…
Connect assignment O es Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded (Aggregate Demand) Output Supplied (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 100 Aggregate Supply and Demand 200 $800 100 900 900 900 900 90 900 900 700 Real Output (quantity per year) Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ Tools AD D AS e b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have…
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table Amount of Price Level Amount of Real GDP (Price Index) Real GDP Demanded, 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 agregate demand and aggregate supply curves. What are the…
10. The table below shows the aggregate demand and short run aggregate supply schedules of India. The potential aggregate output of India is 1050 billion rupees. Aggregate Price Level Real GDP demanded Real GDP supplied in the (billions of rupees) short run (billions of rupees) 100 1150 1050 110 1100 1100 120 1050 1150 130 1000 1200 140 950 1250 150 900 1300 160 850 1350 a) Represent the above information in an appropriately labelled diagram. b) What are the short run equilibrium price level and aggregate output? c) Calculate the output gap, and state what type of gap the economy is facing.
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…
What are the factors other than price that can shift aggregate demand curve interms of investment and consumption? Also explain graphically.
Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand diagram. What is the equilibrium output and price level? If aggregate demand shifts right, what is equilibrium output? If aggregate demand shifts left, what is equilibrium output? In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?
The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Acadia. Aggregate Demand and Aggregate Supply Schedules for Acadia Real GDP Price Level (2012 = 100) 140 130 120 110 100 (ADO) 190 210 230 250 270 (AD1) (ASO) (2012 $ billions) 240 260 280 300 320 270 260 230 180 110 (AS1) 310 300 280 250 190 a. Draw a graph showing Acadia's ADo, ADI, ASo, and AS1. Plot only the endpoints of the two aggregate demand curves and all five points for each of the two aggregate supply curves. b. If initially ADo and ASo are the relevant schedules, what are Acadia's equilibrium price level and real output? What happens if the price level is 140? 110? c. If aggregate demand shifts from ADo to AD1 while aggregate supply remains at ASo what are Acadia's new equilibrium price level and real output? Describe this change in aggregate demand. d. If aggregate supply shifts from ASo to AS1 while aggregate demand returns to ADo, what are Acadia's new equilibrium price level…
The following are variables that may cause shifting of aggregate demand (AD) curve. Discuss the effect of increasing these variables to the aggregate demand. Use graphical approach to demonstrate the effect of increasing of each variable and explain why the AD curve shifted. a) Government expenditure (domestic)
Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.
37.6% R Give Up? O Hint ment Score: Resources Chec on 5 of 15 <. In 2013, Prussia's aggregate demand curve was determined by the equation M +0= 4%. A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M +6= 7%. Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph. Which of the factors could have resulted in the change in 14 aggregate demand seen between 2013 and 2014? 13 O an improvement in technology 12 11 an increase in imports 10 a decrease in oil prices 8. AD 2013 O higher consumer confidence 7. 5. -3 -2 -1 3. 6. 10 Real GDP growth rate F12 AD 2014 4. 6, 4. Inflation rate