Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table.

Amount of Real GDP Demanded, Billions	Price Level (Price Index)	Amount of Real GDP Supplied, Billions
$ 100	300	$ 450
$ 200	250	400
$ 300	200	300
$ 400	150	200
$ 500	100	100

a. Use the data above to graph the aggregate demand and aggregate supply curves.

Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output.

Instructions: Enter your answers as a whole number.

a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy?

Equilibrium price level =

Equilibrium level of real output = $ billion

Is the equilibrium real output also necessarily the full-employment real output?

(Click to select) No Yes

b. If the price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied?

(Click to select) Exceed Fall short Equal

By what amount?

$ billion

If the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied?

(Click to select) Equal Exceed Fall short

By what amount?

$ billion

c. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. What are the new equilibrium price level and level of real output?

Equilibrium price level =

Equilibrium level of real output = $ billion