Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: (18 points) Amount of Real GDP Demanded Price Amount of Real GDP Supplied $ 600 $500 $1200 $ 700 $400 $1000 $ 800 $300 $ 800 $ 900 $200 $ 600 $1000 $100 $ 400 Use the above data to graph the aggregate supply and aggregate demand curves. What are the equilibrium price and equilibrium level of real GDP? When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.

Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table: (18 points) Amount of Real GDP Demanded Price Amount of Real GDP Supplied $ 600 $500 $1200 $ 700 $400 $1000 $ 800 $300 $ 800 $ 900 $200 $ 600 $1000 $100 $ 400 Use the above data to graph the aggregate supply and aggregate demand curves. What are the equilibrium price and equilibrium level of real GDP? When this economy reaches its equilibrium GDP in this example, is it also operating at potential GDP? Explain why or why not.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5PA

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Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table Amount of Price Level Amount of Real GDP (Price Index) Real GDP Demanded, Supplied, Billions Billions $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100 a. Use the data above to graph the agregate demand and aggregate supply curves. What are the…
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