Real GDP Price Level Real GDP

Demanded (Price Index) Supplied

$100 300 $400

$200 250 $400

$300 200 $300

$400 150 $200

$500 150 $100

1.Use the above table to answer the following questions. (All Real GDP figures are in billions of $.)

Graph and label the AD and AS curves in the graph below.

What are the equilibrium price level and real output? __________________________

Is this equilibrium real output the full-capacity real output?Explain. _____________

_____________________________________________________________________

Suppose that buyers desire to purchase $200 of extra real output at each price level.Draw the new aggregate demand curve, AD₁.

What are the new equilibrium price level and real output? ______________________

Over which range of aggregate supply has equilibrium changed? ________________

Bb Courses CAC:Cent Bb Content aw54 X Macro Te b Why is Re Ask a Qui TestOut L TestOut * Course H b 3.4.8 Trol + V X -> O https://learn-us-east-1-prod-fleet01-xythos.$3.us-east-1.amazonaws.com/5c142368celed/2704204?response-content-disposition=inline%38%20filename%2A63DI > . . . Is this equilibrium real output the full-capacity real output? Explain. Suppose that buyers desire to purchase $200 of extra real output at each price level. Draw the new aggregate demand curve, AD1. What are the new equilibrium price level and real output? Over which range of aggregate supply has equilibrium changed? Price Level 300 - 250 200 150 100 50 - 100 200 300 Real Domestic 400 500 Output (billions $) Type here to search O e P W 6:31 PM 5/10/2020