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The table below shows some macroeconomic data for the economy of Cheer. Aggregate demand (AD) and (short- run) aggregate supply (AS) values are in billions
The table below shows some macroeconomic data for the economy of Cheer. Aggregate demand (AD) and (short- run) aggregate supply (AS) values are in billions of dollars. Long-run aggregate supply (LAS) is $2160 billion. P AD1 AS1 106.0 2184 2124 106.3 2169 2129 106.6 2154 2134 106.9 2139 2139 107.2 2124 2144 107.5 2109 2149 107.8 2094 2154 108.1 2079 2159 108.4 2064 2164A. The current equilibrium price level is 105.9 and real GDP is $ 2139 dollars. B. The economy is experiencing a recessionaryr gap of S 21 billion. Note: if the economy:r is operating at LAB, then its gap is zero. C. Now, suppose there was an increase in factor prices leading to a change of $6 billion. Complete the table below. Note: this will change either AD or A5, but not both. C. Now, suppose there was an increase in factor prices leading to a change of $60 billion. Complete the table below. Note: this will change either AD or AS, but not both. P 106.0 106.3 106.6 106.9 107.2 107.5 107.8 108.1 108.4D. The new equilibrium price level would be and real GDP would be $ billion and the economy would be of S billion. Note: if the economy is operating at LAS, then its gap Please answer all pat long-run aggregate supply (LAS) experiencing a recessionary gap experiencing an inflationary gap
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