Question
Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Level
Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville:
(A) | (B) | (C) | |||
---|---|---|---|---|---|
Price Level | Real GDP | Price Level | Real GDP | Price Level | Real GDP |
110 | 275 | 100 | 200 | 110 | 225 |
100 | 250 | 100 | 225 | 100 | 225 |
95 | 225 | 100 | 250 | 95 | 225 |
90 | 200 | 100 | 275 | 90 | 225 |
a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville?
(Click to select) The data in A The data in B The data in C
The short run?
(Click to select) The data in A The data in B The data in C
The long run?
(Click to select) The data in A The data in B The data in C
b. Assuming no change in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A?
Instructions: Enter your answers rounded to the nearest whole number.
At a price level of 110:
At a price level of 100:
At a price level of 95:
At a price level of 90:
Do the new data reflect an increase in aggregate supply or do they indicate a decrease in aggregate supply?
(Click to select) Increase in aggregate supply Decrease in aggregate supply
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