The following schedule provides information with which to draw both an aggregate demand curve and an aggregate supply curve. Both curves are assumed to be straight lines.

Average Price Quantity Demanded Quantity Supplied

(dollars per unit) (units per year) (units per year)

$ 1000 0 1000

$ 100 900 100

(a) At what price level does equilibrium occur?

(b) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $700?

(c) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $500?

(d) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $300?