The accompanying table shows the aggregate demand and aggregate supply schedues for 3 Hyp Real Domestic Output Supplied (in Billions) $9,000 8,000 5,000 Price Level (Index Value) Real Domestic Output Demanded (in Billions) $3,000 4,000 350 300 5,000 250 200 7,000 6,000 7,000 8.000 150 5,000 100 4,000 a What is the equilibrium price and output levels? b. If the price level is 350, what will happen in the economy? why?

The accompanying table shows the aggregate demand and aggregate supply schedues for 3 Hyp Real Domestic Output Supplied (in Billions) $9,000 8,000 5,000 Price Level (Index Value) Real Domestic Output Demanded (in Billions) $3,000 4,000 350 300 5,000 250 200 7,000 6,000 7,000 8.000 150 5,000 100 4,000 a What is the equilibrium price and output levels? b. If the price level is 350, what will happen in the economy? why?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Introduction To Macroeconomics

Section: Chapter Questions

Problem 3.3P

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A Moving to another question will save this response. Question 26 The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Real Domestic Output Demanded Real Domestic Output Price Level (in Billions) (Index Value) Supplied $ 500 350 $ 3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000 a. If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be? I b. At the price level of 150, what will happen to the levels of output supplied and output demanded? what will generally happen in the economy? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 自Q
Moving to another question will save this response. Quèstion 17 The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Real Domestic Output Demanded Price Level Real Domestic Output (in Billions) $ 500 (Index Vallue) Supplied 350 $ 3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000 a If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be? b. At the price level of 150, what will happen to the levels of output supplied and output demanded? what will generally happen in the economy? (1 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 三v A 工|品 ronh Arial 10pt 田田因田

Consider schedule #1 in the aggregate demand and aggregate supply table given below. The equilibrium output and price level for the economy described on this schedule are: Table 10.1 Quantity of Quantity of Aggregate Output Price Aggregate Output Supplied Demanded Level # 1 #2 # 3 $7.0 110 $5.0 $6.0 $4.0 6.5 120 5.5 6.5 4.5 6.0 130 6.0 7.0 5.0 5.5 140 6.5 7.5 5.5 5.0 150 7.0 8.0 6.0 a. $6.0 and 130, respectively. O b. $6.5 and 120, respectively. c. $5.0 and 150, respectively. d. $5.5 and 140, respectively. e. $7.0 and 110, respectively.
6. Nonprice-level determinants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy. Specifically, aggregate supply shifts to the left from AS₁ to AS₂, causing the quantity of output supplied at a price level of 125 to fall from $250 billion to $150 billion. PRICE LEVEL (CPI) 200 175 150 100 50 25 0 0 50 AS2 AS₁ 100 150 200 250 300 REAL GDP (Billions of dollars) 350 400
The following graph shows the aggregate demand curve. Shift the aggregate demand curve on the graph to show the impact of a tax cut. (? 130 120 Aggregate Demand 110 100 90 Aggregate Demand 80 70 10 20 30 40 50 60 OUTPUT PRICE LEVEL
Question 6 refers to the graph below. Aggregate Supply1 Aggregate Supply2 Aggregate Supply3 Aggregate Demand4 Aggregate Demands Aggregate Demand1 Aggregate Demand3 Aggregate Demand2 REAL GROSS DOMESTIC PRODUCT 25. In the graph above, crowding in is shown by which of the following shifts? (A) Aggregate Demand to Aggregate Demand4 to Aggregate Demands (B) Aggregate Demand to Aggregate Demands to Aggregate Demand4 (C) Aggregate Demand to Aggregate Demand2 to Aggregate Demand3 (D) Aggregate Demand1 to Aggregate Demand3 to Aggregate Demand2 (E) Aggregate Supply to Aggregate Supply2 toAggregate Supply3 PRICE LEVEL
The aggregate demand and supply for Cancum are shown in the table below. Potential GDP (LAS) is $1,200 billion. Price Index 105 110 115 120 125 130 135 140 Aggregate Quantity Demanded 1,300 1,200 1,100 1,000 900 800 700 600 Aggregate Quantity Supplied 325 650 850 1,000 1,100 1,200 1,300 1,350 a. If the economy is in equilibrium, it experiencing a(n) (Click to select)✓ gap of $ b. Suppose government uses countercyclical fiscal policy to close the gap. In order to achieve full employment AD would have to (Click to select) by $ c. As a result of this change, the inflation rate would be %. Round your answer to 2 decimal places.
What effect would an increase in aggregate demand have on price levels and GDP? What effect would an increase in aggregate supply have on price levels and GDP? (2 points)
Carefully evaluate: “The supply and demand for agricultural products are such that small changes in agricultural supply result in drastic changes in prices. However, large changes in agricultural prices have modest effects on agricultural output.” (Hint: A brief review of the distinction between supply and quantity supplied may be helpful.) Do exports increase or reduce the instability of demand for farm products? Explain.
Please explain how an increase in the price of crude oil can affect the Canadian economy.
4. Equilibrium The following table shows the real output demanded and supplied at various price levels in a hypothetical economy. Real Output Demanded (Billions of dollars) 10 20 30 50 80 Price Level (Index number) 160 120 80 40 20 Real Output Supplied (Billions of dollars) 85 80 70 50 20 On the following graph, use the blue points (circle symbol) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange points (square symbol) to plot the aggregate supply (AS) curve for the economy.
Question 2Identify what sort of effects the following listed events have.You are required to define the market under study (for example: the labour market, oil market, etc). Explain whether the event acts on the demand or supply side, and whether the event leads to a quantity or price change, or leads to a shift in demand and/or supply.Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply.a) An increase in oil prices as a consequence of a price dispute in the world oil marketsb) The implementation of a minimum wagec) The implementation of subsidies to milk producers in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of an increase in tuition in University studies