Determine the new level of real output, Macroeconomics

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Determine the new level of real output

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

Use these sets of data to graph aggregate supply curves and the aggregate demand curves.

1. Calculate 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?

2. Describe why will a price level of 150 not be an equilibrium price level in this economy?

3. Assume that buyers desire to purchase $200 billion of extra real output at each price level. Draw in the new aggregate demand curve as AD1. Explain what factors might cause this change in aggregate demand? Determine the new level of real output and the equilibrium price level?

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Macroeconomics: Determine the new level of real output

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Macroeconomics: Determine the new level of real output

Reference No:- TGS0871822

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Determine the expected profit rate

Q : Calculate the three limitations to traditional cost risk

Q : How does this practice affect the economic cost

Q : Identify the net exports and solve for level of aggregate

Q : Determine the new level of real output

Q : What might you expect to happen to real gdp

Q : Explain what will be unemployment rate

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Macroeconomics: Determine the new level of real output

Reference No:- TGS0871822

Recent Questions Asked Macroeconomics

Q : Determine the expected profit rate

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Q : How does this practice affect the economic cost

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Q : What might you expect to happen to real gdp

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