Suppose the level of real GDP supplied by firms is $10 trillion and the price level is 102. In this case, the quantity of real GDP supplied is the real GDP demanded at a price level of 102, and firms will experience an unplanned respond to the change in inventories by producing real GDP of $ trillion. in inventories. Firms will output until the economy reaches macroeconomic equilibrium at a price level of and Suppose consumers and businesses become less optimistic about future economic conditions, causing the aggregate demand curve to decrease by $1.5 trillion at each price level. On the previous graph, use the green line (triangle symbol) to show the new aggregate demand curve (AD). (Hint: Be sure that AD, is parallel to AD.) Then use the purple point (diamond symbol) to indicate the new macroeconomic equilibrium after the shift of aggregate demand. (Note: Dashed drop lines will automatically extend to both axes.) Save & Continue Attempts Score/2 7. Macroeconomic equilibrium and the ranges of the aggregate supply curve The following graph shows the aggregate demand (AD) and aggregate supply (AS) curves for a hypothetical economy with full employment output of $11 trillion. PRICE LEVEL (Price Index) 130 So AS AD 125 120 115 110 105 100 85 90 8.0 8.5 9.0 10.0 95 REAL GDP (Trillions of dollars) 10.5 11.0 11.5 12.0 AD Macro Eq 2 Suppose the level of real GDP supplied by firms is $10 trillion and the price level is 102. In this case, the quantity of real GDP supplied is