u ule agigate supply curve if this situation occurs? 4. Columns 1 and 2 in the t
ID: 1104550 • Letter: U
Question
u ule agigate supply curve if this situation occurs? 4. Columns 1 and 2 in the table below are the aggregate supply schedule of an economy. Price Real 260 2540 940 1140 1900 2000 2090 2390 240 2490 1040 1240 2000 2100 2190 2490 220 2430 1140 1340 2100 2200 2290 2590 200 2380 1240 1440 2200 2300 2390 2690 190 2350 1300 1500 2250 2350 2540 2740 180 2300 1440 1640 2300 2400 2590 2890 160 2200 1540 1740 2400 2500 2690 2990 140 2090 1640 1840 2500 2600 2790 3090 20 1940 1740 1940 2600 2700 2890 3190 100 1840 1840 2040 2700 2800 2990 3290 a. If the aggregate demand in the economy were columns 1 and 3, the equilibrium real GDP would be and the equilibrium price level would be and if aggregate demand should increase to that shown in columns 1 and 4, the equilibrium real GDP would increase to and the price level would be b. Should aggregate demand be that shown in columns 1 and 5, the equilibrium real GDP would be demand should increase by 100 units to that shown in columns 1 and 6, the equilibrium real GDP would increase to and the equilibrium price level would be , and if aggregate and the price level would rise toExplanation / Answer
Equilibrium occurs where demand equals supply.
A)
Column 1 and 3: Q* = 1840 and P* = 100
Column 1 and 4: Q* = 1940 and P* = 120
B)
Column 1 and 5: Q* = 2300 and P* = 180
Column 1 and 6: Q* = 2350 and P* = 190
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