Equilibrium

The following table shows the real output demanded and supplied at various price levels in a hypothetical economy.

Real Output Demanded	Price Level	Real Output Supplied
(Billions of dollars)	(Index number)	(Billions of dollars)
10	160	85
20	120	80
30	80	70
50	40	50
80	20	20

On the following graph, use the blue points (circle symbol) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange points (square symbol) to plot the aggregate supply (AS) curve for the economy.

Note: Line segments will automatically connect the points.

Homework: Bringing in the Supply Side: Unemployment and Inflation? ? 200 Initial AD 160 120 AS PRICE LEVEL (Billions of dollars) 80 New AD 40 20 40 60 80 100 REAL GDP (Index numbers) The equilibrium price level is , and the equilibrium level of real output is