3. Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the table to the right. LO3

a. Use the data avbeo to gaprh the aggegr ate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of realoutputinthis hypothe tical economy? Is the equilibrium real output also necessarily the fullemployment real output?

b. If the price vleel in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied? Bywhatamount ? I fthepricele velis250, will quantity demanded equal, exceed, or fall short of quantity supplied? By what amount?

c. Suppose that bueyrs desier to pcuhrase $200 billion of extra real output at each price level. Sketch in the new aggregate demand curve as AD1. What is the new equilibrium price level and level of real output?

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Amount of Real GDP Demanded, Billions Amount of Real GDP Price Level (Price Index) Supplied, Billions $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100