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Suppose that the aggregate demand and the aggregate supply schedules for a hypothetical economy are as shown below: mount of reel Amount of reel domestic output Price level domestic output euppl ied billions a. Use these data to graph the aggregate demand and supply curves. Instructions: 1. Use the line tools "AD" and "A5" to draw the aggregate demand (plot 5 points total) and aggregate supply curves (plot 5 points total) given in the table above. To earn full credit for this graph, you must plot all required points for each curve. 2. Use the drop line tool called "Eq" to indicate the equilibrium price level and the equilibrium level of real output. 3. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. AD 350 - AS 300- Ea 250- Price level AD1 200 - 150 - 100- 50 - 100 200 300 400 500 600 700 Real domestic output ($billions) reset What is the equilibrium price level and level of real output in this hypothetical economy? Equilibrium price level =Equilibrium level of real output = $ |:| billion Is the equilibrium real output also the full-employment real output? {Click to select} 3 b. Ifthe price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied? {Click to select) 3 By what amount? $ |:| billion If the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied? {Click to select} 3 By what amount? $ billion c1. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. Sketch in the new aggregate demand curve as A01. Instruction: In the above graph use the line tool "AD1" to sketch in the new aggregate demand curve. Plot the two end points. c2. What is the new equilibrium price level and the level of real output? The new equilibrium price level = |: The new level of real output = $ billion Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $225. and that data set B represents the relevant aggregate supply schedule for the economy. Price Reel Price Reel Price Reel Leve1 lIme Level GDP Leve1 GDP 11 215 10 225 m 225 m 225 a. What must be the current amount of real output demanded at the 100 price level? Real output demanded = $ |:| b. Ifthe amount of output demanded declined by $25 at the 100 price levels shown in B, what would be the new equilibrium real GDP? The new equilibrium level of real GDP = $ :| In business cycle terminology, what would economists call this change in real GDP? {Click to select}