The table below depicts the relationship between the price level and aggregate demand and aggregate supply.

Aggregate Demand and Aggregate Supply

Price Level Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate Supply

(thousands of dollars) (thousands of dollars) (thousands of dollars)

80 $350 $50 $250 90 300 150 250 100 250 250 250 110 200 350 250 120 150 450 250

a. Draw the aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) curves for this economy.

Instructions: Use the tools provided "AD," "SRAS," and "LRAS" to plot each line point by point (5 points total for each line).

b. What is the full-employment level of output?

$ ............... thousand

c. What is the market equilibrium?

A price level of .......... and real GDP of $ ............ thousand