Given the above information in this hypothetical economy

Question

Given the above information, in this hypothetical economy what is the equilibrium price level and the equilibrium level of real output? Using Excel, graph both the aggregate demand and aggregate supply curves.

1. Can there be equilibrium level of output at below full employment?
2. At what price level will aggregate supply equal aggregate demand? At what price level will demand fall below aggregate supply? Given a price level of 250 will aggregate demand exceed supply?
3. If the aggregate demand schedule shifted by $20 billion to the right at every level, what would be the new equilibrium level of income?

Amount of Real GDP Demand (in billions)

Price Level (Price Index) Amount of Real GDP Supplied (in billions) $180 300 $500 260 250 400 300 200 300 420 150 200 560 100

100