The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy. Acadia. Aggregate Denand and Aggregate Bupply Behedules for Acadia Real GDP (ADo) (AD1) (2012 S billions) (ASo) (AS) Price Level (2012 100) 140 150 200 220 230 280 130 170 220 270 120 190 240 260 280 190 240 110 210 230 160 210 100 120 170 b. Initially ADo and ASo are the relevant schedules. The equilibrium price level is 120 and equilibrium real output is S 230 O billion. If the price level is 140 then real output is $ 270 increase Oin inventories. This pushes the price level billion, real expenditures are S 190 O billion, and there is an unintended up If the price level is 110 then real output is $ 180 O billion, real expenditures are $ in inventories. This pushes the price level 250 O billion, and there is an unintended decrease up c. Now aggregate demand shifts from ADo to AD, while aggregate supply remains at ASo. Aggregate demand has undergone an) increase O. As a result the equilibrium price level stays the same O and has a value of 130 while equilibrium real output increases O and has a value of S 260 O bilion. d. Now aggregate supply shifts from ASo to AS, while aggregate demand remains at ADo Aggregate supply has undergone a short-run decrease 120 O whilie equilibrium real output increases As a result the equilibrium price level stays the same Oand has a and has a value of S 240 O billion, value of < Prev 5 of 16 Next >