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Use the following data to answer three questions: Price Level 10 20 30 40 50 60 70 80 90 100 Real GDP $ 600 680
Use the following data to answer three questions: Price Level 10 20 30 40 50 60 70 80 90 100 Real GDP $ 600 680 supplied 500 750 800 880 910 940 960 970 Real GDP $ 960 920 880 840 demanded 800 760 720 680 640 600 Instructions: Enter your responses as a whole number. a. What is the equilibrium GDP? b. If full employment occurs at a real output level of $960, how large is the real GDP gap? c. If AD changes enough to restore full employment, what will the price level be?What will the cumulative AD shift be for d. The increased government spending? billion e. The tax cut? billion f. The increased transfers? billionSuppose the consumption function is C = $700 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with
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