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Price level Real GDP demanded (billions of 2009 dollars) Real GDP supplied (billions of 2009 dollars) 90 450 150 100 400 250 110 350 350
Price level | Real GDP demanded (billions of 2009 dollars) | Real GDP supplied (billions of 2009 dollars) |
90 | 450 | 150 |
100 | 400 | 250 |
110 | 350 | 350 |
120 | 300 | 450 |
130 | 250 | 550 |
The table above shows Yellowland's economy aggregate demand and supply schedules. Yellowland's potential GDP is $300 billion.
a) Plot the aggregate demand curve, the short-run aggregate supply curve, and the long-run aggregate supply curve.
b) What are the short-run equilibrium real GDP and price level in Yellowland?
c) What is the long-run equilibrium real GDP?
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