Suppose the table below shows the schedules for aggregate demand and short-run aggregate supply in the economy of Tipitina. Further assume that potential output in Tipitina is $200 billion. Use this information to solve the next four questions.
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Suppose the table below shows the schedules for aggregate demand and short-run
|
|
Aggregate Quantity of Goods and Services… |
|
|
Price Level |
Demanded (in billions of $) |
Supplied (in billions of $) |
|
50 |
$350 |
$250 |
|
75 |
300 |
300 |
|
100 |
250 |
330 |
|
125 |
200 |
350 |
|
150 |
150 |
360 |
What type of output gap is Tipitina currently facing? Indicate your answer below by writing either “inflationary”, “recessionary”, or “no gap” EXACTLY. How large is the gap? Enter your answer as a whole number. Do not put any symbols or words in your answer.
Type of gap =
Size of gap = $ billion
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- Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $280, and that data set A represents the relevant aggregate supply schedule for the economy. (A) Price Level 100 100 100 100 Real GDP 205 230 255 280 (B) Price Level 110 100 95 90 Real GDP 230 230 230 230 (C) Price Level 110 100 95 90 Real GDP 280 255 230 205 a. What must be the current amount of real output demanded at the 100 price level? Real output demanded = $ b. If the amount of output demanded declines by $25 at the 100 price level shown in A, what will be the new equilibrium real GDP? The new equilibrium level of real GDP = $ In business cycle terminology, what would economists call this change in real GDP? (Click to select)Consider schedule #1 in the aggregate demand and aggregate supply table given below. The equilibrium output and price level for the economy described on this schedule are: Table 10.1 Quantity of Quantity of Aggregate Output Price Aggregate Output Supplied Demanded Level # 1 #2 # 3 $7.0 110 $5.0 $6.0 $4.0 6.5 120 5.5 6.5 4.5 6.0 130 6.0 7.0 5.0 5.5 140 6.5 7.5 5.5 5.0 150 7.0 8.0 6.0 a. $6.0 and 130, respectively. O b. $6.5 and 120, respectively. c. $5.0 and 150, respectively. d. $5.5 and 140, respectively. e. $7.0 and 110, respectively.Moving to another question will save this response. Quèstion 17 The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Real Domestic Output Demanded Price Level Real Domestic Output (in Billions) $ 500 (Index Vallue) Supplied 350 $ 3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000 a If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be? b. At the price level of 150, what will happen to the levels of output supplied and output demanded? what will generally happen in the economy? (1 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 三v A 工|品 ronh Arial 10pt 田田因 田
- Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Amount of Real GDP Demanded, Real GDP Supplied, Billions Price Level Billions (Price Index) $100 300 $450 $200 250 400 $300 200 300 $400 150 200 $500 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Instructions: Enter your answers as a whole number. a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical…From the information provided, determine whether you are given an Aggregate Supply or Aggregate Demand Schedule and, if Aggregate Supply, the time frame associated with the price level and output HINT: You may want to plot out the points on a graph. 6 Price Level 27:26 120 121 122 123 124 Multiple Choice Immediate Short Run Aggregate Supply Long Run Aggregate Supply Short Run Aggregate Supply Output (in billions) $550 555 558 561 565 Aggregate DemandSuppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: Amount of Real GDP Demanded $ 600 $ 700 $ 800 $ 900 $1000 Price Amount of Real GDP Supplied $500 $1200 $400 $1000 $300 $200 $100 $ 800 $ 600 $ 400 a. Use the above data to graph the aggregate supply and aggregate demand curves. b. What are the equilibrium price and equilibrium level of real GDP? C. When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.
- In 2006, the economy of Singsville had an aggregate demand and aggregate supply according to the following schedule:Price level Aggregate Demand Short-Run Aggregate Supply100 $1445 $1085110 $1380 $1140120 $1315 $1195130 $1250 $1250140 $1185 $1305150 $1120 $1360160 $1055 $1415 What was the equilibrium price level in Singsville in 2006?A Moving to another question will save this response. Question 26 The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Real Domestic Output Demanded Real Domestic Output Price Level (in Billions) (Index Value) Supplied $ 500 350 $ 3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000 a. If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be? I b. At the price level of 150, what will happen to the levels of output supplied and output demanded? what will generally happen in the economy? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 自QThe table below illustrates the aggregate demand and aggregate supply schedules of country A: Price level Quantity demanded of Quantity supplied of real GDP (CPI) real GDP (Short run) (€ bill.) (€ bill.) 90 450 350 100 400 400 110 350 450 120 300 500 130 250 550 140 200 600 1) What is the short run macroeconomic equilibrium in country A? 2) If potential GDP is €500 bill., is there an inflationary or recessionary gap and what is its size? 3) What is real GDP and price level if aggregate demand increases by €100 billion? 4) What is real GDP and price level if money wages (salaries) increase and the short run aggregate supply changes by €100 billion? 5) What is real GDP and price level if potential GDO increases by €150 billion?
- Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table. Amount of Real GDP Demanded, Amount of Real GDP Supplied, Billions Price Level1 Billions (Price Index) $ 100 $ 200 $ 300 $ 400 $ 500 300 $ 450 250 400 200 300 150 200 100 100 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided 'Eq' to indicate the equilibrium price level and the equilibrium level of real output. 350 Tools 300 AD AS 250 200 Eq 150 100 50 100 200 300 400 500 600 700 Real domestic output (billions of dollars) Price levelRefer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 and $255, and that data set B represents the relevant aggregate supply schedule for the economy. Price Level 110 100 95 90 (A) $ Real GDP 280 255 230 205 Price Level 100 100 100 100 (B) Real GDP 205 230 255 280 Price Level 110 100 95 90 (C) Real GDP 230 230 230 230 Instructions: Enter your answers as a whole number. a. What must be the current amount of real output demanded at the 100 price level? $ b. If the amount of output demanded declines by $25 at the 100 price level shown in B, what would be the new equilibrium real GDP? In business cycle terminology, economists would likely call this change in real GDP (Click to select) ✓Make 1 demand graph and 1 supply graph to plot the data in the table Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown below: Amount of Real GDP Demanded, Billions Price Level (Price Index) Amount of Real GDP Supplied, Billions $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100
