ZuoTi.Pro
Question

Use the aggregate supply (AS) curve and aggregate demand (AD) curve below to determine the equilibrium price level and equilibrium real GDP for this economy.


Use the aggregate supply (AS) curve and aggregate demand (AD) curve below to determine the equilibrium price level and equilibrium real GDP for this economy. 

image.png

image.png

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Real GDP & Price level are at the point where AS & AD curves intersect each other

Price Level = 160

Real GDP = 100 billion

0 0
Add a comment
Know the answer?
Add Answer to:
Use the aggregate supply (AS) curve and aggregate demand (AD) curve below to determine the equilibrium price level and equilibrium real GDP for this economy.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The data below represents the price level, the aggregate demand, and the aggregate supply data for...

    The data below represents the price level, the aggregate demand, and the aggregate supply data for an economy. Use the data points to plot an aggregate demand curve and aggregate supply curve for this economy. Each curve is labeled as AS (Aggregate Supply) or AD (Aggregate Demand) and each point is labeled as a, b, or c from the table headings. 60 Price Level Aggregate Supply (AS) Aggregate Demand (AD) 20 $800 $1,400 $1,000 $1,000 100 $1,200 $600 Provide your...

  • If the aggregate demand (AD) curve and the aggregate supply (AS)

    If the aggregate demand (AD) curve and the aggregate supply (AS) curve intersects at the level of real GDP less than potential GDP, there is a recessionary gap  an above full-employment equilibrium an inflationary gap  a falling real GDP

  • The following table shows the initial level of aggregate demand (AD) and te supply (AS) for the economy of Adanac.

    The following table shows the initial level of aggregate demand (AD) and te supply (AS) for the economy of Adanac. The full-employment level of output is $500 billion.  a. Draw the corresponding initial aggregate demand and aggregate supply curve (AD0 and AS0). b. What is the initial equilibrium price level and level of real GDP?  c. At this initial equilibrium (AD0 and AS0), is Adanac experiencing either a recessionary or inflationary gap? If so, how large a gap exists? d. Suppose the aggregate demand in...

  • ()​-run equilibrium occurs at the intersection of the aggregate demand​ curve, ​AD, and the​ short-run aggregate...

    ()​-run equilibrium occurs at the intersection of the aggregate demand​ curve, ​AD, and the​ short-run aggregate supply​ curve, SRAS.() ▼ Long Short ​-run equilibrium occurs at the intersection of AD and the​ long-run aggregate supply​ curve, LRAS. Any unanticipated shifts in aggregate demand or supply are called aggregate demand or aggregate supply() ▼ shocks externalities . When aggregate demand decreases while aggregate supply is​ stable,() ▼ a recessionary an inflationary gap can​ occur, defined as the difference between how much...

  • The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy....

    The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...

  • 1. Suppose that the aggregate demand supply schedules for a hypothetical economy are shown as below:...

    1. Suppose that the aggregate demand supply schedules for a hypothetical economy are shown as below: AD (in billion ) Price level index) SRAS (in billion $ $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100 a. Use these sets of data to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also...

  • 1. Aggregate demand curve of an economy is given by AD = 51 - 0.2P, the...

    1. Aggregate demand curve of an economy is given by AD = 51 - 0.2P, the long-run aggregate supply, LRAS, is 30 and the short-run aggregate supply is given by SRAS = 0.3 P (all output measures are in US$ billions and the price level is given as an index number). What could be the unemployment rate if the natural rate of unemployment is 4%? 2. Aggregate demand curve of an economy is given by AD = 51 - 0.2P,...

  • Suppose the current level of real GDP for an economy is below its potential level of...

    Suppose the current level of real GDP for an economy is below its potential level of RGDP. Starting with this situation, and in the absence of any government action, what should next happen in the AD-AS model? Group of answer choices A. A decrease in the Long-Run Aggregate Supply B. An increase in Aggregate Demand C. A decrease in Aggregate Demand D. An increase in the Short-Run Aggregate Supply E. An increase in the Long-Run Aggregate Supply F. A decrease...

  • Given a downward-sloping aggregate demand (AD) curve and an upward-sloping short-run aggregate supply curve (SRAS), equilibrium...

    Given a downward-sloping aggregate demand (AD) curve and an upward-sloping short-run aggregate supply curve (SRAS), equilibrium occurs where the two intersect. The value on the vertical axis is the equilibrium price level and the value on the horizontal axis is the equilibrium value of real GDP or output. What happens to the economy when AD shifts? It is useful to sketch a graph and show the shift. Suppose, for example, interest rates fall or wealth increases due to a stock...

  • Suppose that the aggregate demand and supply schedules for a hypothetical economy are as shown below:

     1. Suppose that the aggregate demand and supply schedules for a hypothetical economy are as shown below: a. Use these sets of data to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also necessarily the full-employment real output? Explain. b. Why will a price level of 150 not be an equilibrium price level in this economy? Why not 250? c. Suppose...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT