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Please anwser questions 1 3 and 4 If GDP = C + I and if G D P = C + S , then =

Please anwser questions 13 and 4
If GDP =C+I and if GDP=C+S,
then
=
(LO 11-1)
Given the information in Figure 1, and assuming
an interest rate of 15 percent: (a) Will the economy
beat equilibrium? (b) Will savings equal investment?
(c) What will happen, according to the classical
economists? (LO 11-3,11-6)
shifts from AD2 to AD3, what happens to the level of
prices and to output? (c) If aggregate demand shifts
from AD3 to AD4, what happens to the level of prices
and to output? (LO 11-4)
FIGURE 2
Given the information in Figure 2: (a) Which
aggregate demand curve represents our economy
during the Great Depression? (b) Which aggregate
demand curve represents our economy during nearly
all the years since World War II?(c) Which aggregate
demand curve represents our economy during
a period of full employment with a great deal of
inflation? (LO 11-6)
FIGURE 1
Given the information in Figure 2: (a) If aggregate
demand shifts from AD1 to AD2, what happens to the
level of prices and to output? (b) If aggregate demand
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