1 An unexpected increase in exports increases aggregate demand by 50 billion. What happens to the price...

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1 An unexpected increase in exports increases aggregate demand by £50 billion. What happens to the price level and real GDP? Has Shell Island experienced inflation or deflation and what type of output gap does it now have?

The table shows the aggregate demand and short-run aggregate supply schedules of shell Island in which potential GDP is £600 billion.

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Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

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Question Posted: Nov 07, 2024 05:00 AM

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1 An unexpected increase in exports increases aggregate demand by 50 billion. What happens to the price...

Question:

Real GDP demanded Price level Real GDP supplied in the short run (billions of 2013 pounds) 100 650 550 110 625 575 120 600 600 130 575 625 140 550 650

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Economics

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