The economy of Ficticiousland has demand and supply schedules as follow: Price Level (CPI) Aggregate Demand Short-run aggregate supply 250 4 16 200 8 12 150 12 8 100 16 4 Reflecting GDP in trillions of dollars Please submit the answer for the following exercises, show your work. 1. Graph the aggregate demand curve and the short run aggregate supply curve 2. What are short-run equilibrium real GDP and the price level? 3. If Ficticiousland's potential real GDP is $12 trillion, plot the long-run aggregate supply curve (LRAS) in the graph.
The economy of Ficticiousland has demand and supply schedules as follow: Price Level (CPI) Aggregate Demand Short-run aggregate supply 250 4 16 200 8 12 150 12 8 100 16 4 Reflecting GDP in trillions of dollars Please submit the answer for the following exercises, show your work. 1. Graph the aggregate demand curve and the short run aggregate supply curve 2. What are short-run equilibrium real GDP and the price level? 3. If Ficticiousland's potential real GDP is $12 trillion, plot the long-run aggregate supply curve (LRAS) in the graph.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter26: The Neoclassical Perspective
Section: Chapter Questions
Problem 21P: Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand...
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Question
The economy of Ficticiousland has demand and supply schedules as follow:
Aggregate Demand |
Short-run |
|
250 | 4 | 16 |
200 | 8 | 12 |
150 | 12 | 8 |
100 | 16 | 4 |
Reflecting
Please submit the answer for the following exercises, show your work.
1. Graph the aggregate demand curve and the short run
2. What are short-run equilibrium real GDP and the price level?
3. If Ficticiousland's potential real GDP is $12 trillion, plot the long-run aggregate supply curve (LRAS) in the graph.
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