Price Level AD AS 50 1,000 250 60 950 580 70 900 750 80 850 850...

Question

Question

Price Level AD AS 50 1,000 250 60 950 580 70 900 750 80 850 850...

Price Level	AD	AS
50	1,000	250
60	950	580
70	900	750
80	850	850
90	800	900

Plot the AD/AS curves and identify the equilibrium. Label correctly the AD/AS graph.
Would you expect unemployment in this economy to be relatively high or low?

business economics

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Answer 1

Answer #1

A) Equilibrium real GDP is 850 and equilibrium price level is 80.

B) Since price level is less than 100, it appears that there is low inflation which means unemployment is relatively high

Price 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 Quantity +AD +-AS

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Answer 2

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Price Level AD AS 50 1,000 250 60 950 580 70 900 750 80 850 850...

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