According to the following data, 2000 2019 $14 $23 Average hourly wage CPI 170 254 a. by what percentage did nominal wages increase between 2000 and 2019? b. by what percentage did consumer prices increase between 2000 and 2019? MI c. Did real wages increase between 2000 and 2019? Use the table and graph to answer three questions. Real GDP (in $ Trillions) Price Level Supplied Demanded 100 4 16 110 10 15 140 14 12 200 15 6 220 AS 200 180 160 Price Level 140 120 100 AD 80 0 5 10 15 20 Real GDP in $ trillions) Using the information in the table and graph, answer the following questions. a. What is the equilibrium price level? b. What is the equilibrium output? trillion in real GDP c. If the quantity of output demanded at every price level increases by $2 trillion, what happens to equilibrium output and prices? Output Prices Use the News Wire to answer three questions. NEWS WIRE SHIFTING AGGREGATE SUPPLY Harvey Slams Into Houston Area Hurricane Harvey is turning into one of the costliest natural disasters in U.S. history. The Houston area was the hardest hit. Winds of up to 132 miles per hour and unrelenting rainfall have inflicted $125 billion of damage. Over 300,000 structures and 500,000 vehicles were damaged, displacing 32,000 people. Houston's two airports were shut down, and flooding closed most roadways. Houston-area oil refineries were also shut down, eliminating about 20 percent of the state's gasoline supply. Source: News accounts of August-September 2017. NOTE: An external shock can disrupt both the demand and supply sides of the economy. The damage caused by Hurricane Harvey to transportation and production systems made supplying output more difficult, more time-consuming, and more expensive. a. Did aggregate supply increase or decrease Aggregate supply because of Hurricane Harvey? Output b. What are the macro results? Price level c. How can the economy stay healthy in this case? Government could enact policy to cause aggregate demand to Government could enact policy to cause aggregate supply to IN According to the following data, 2000 2019 $14 $23 Average hourly wage CPI 170 254 a. by what percentage did nominal wages increase between 2000 and 2019? b. by what percentage did consumer prices increase between 2000 and 2019? MI c. Did real wages increase between 2000 and 2019? Use the table and graph to answer three questions. Real GDP (in $ Trillions) Price Level Supplied Demanded 100 4 16 110 10 15 140 14 12 200 15 6 220 AS 200 180 160 Price Level 140 120 100 AD 80 0 5 10 15 20 Real GDP in $ trillions) Using the information in the table and graph, answer the following questions. a. What is the equilibrium price level? b. What is the equilibrium output? trillion in real GDP c. If the quantity of output demanded at every price level increases by $2 trillion, what happens to equilibrium output and prices? Output Prices Use the News Wire to answer three questions. NEWS WIRE SHIFTING AGGREGATE SUPPLY Harvey Slams Into Houston Area Hurricane Harvey is turning into one of the costliest natural disasters in U.S. history. The Houston area was the hardest hit. Winds of up to 132 miles per hour and unrelenting rainfall have inflicted $125 billion of damage. Over 300,000 structures and 500,000 vehicles were damaged, displacing 32,000 people. Houston's two airports were shut down, and flooding closed most roadways. Houston-area oil refineries were also shut down, eliminating about 20 percent of the state's gasoline supply. Source: News accounts of August-September 2017. NOTE: An external shock can disrupt both the demand and supply sides of the economy. The damage caused by Hurricane Harvey to transportation and production systems made supplying output more difficult, more time-consuming, and more expensive. a. Did aggregate supply increase or decrease Aggregate supply because of Hurricane Harvey? Output b. What are the macro results? Price level c. How can the economy stay healthy in this case? Government could enact policy to cause aggregate demand to Government could enact policy to cause aggregate supply to IN
