Assume that the potential GDP of the economy of Arion is $1,120, and that the aggregate demand and aggregate supply are as shown in the following table. Aggregate Quantity Demanded 1 Aggregate Quantity Demanded 2 Price Index Aggregate Quantity Supplied$1,200 96 $1,0401,180 97 1,0601,160 98 1,0801,140 99 1,1001,120 100 1,1201,100 101 1,1401,080 102 1,1601,060 103 1,1801,040 104 1,2001,020 105 1,220a. The value of equilibrium real GDP is and the price level is .    There is gap. The gap is equal to $ .b. If firms become more optimistic and aggregate demand increases by $40, complete the aggregate demand 2 column in the table above.    c. The new value of equilibrium real GDP is and the price level is now .d. There is gap. The gap is equal to $ .

The aggregate demand and supply for Cancum are shown in the table below. Potential GDP (LAS) is $650 billion. Price Index Aggregate Quantity Demanded Aggregate Quantity Supplied105 750 50110 650 200115 550 325120 450 450125 350 550130 250 650135 150 700140 50 750 a. If the economy is in equilibrium, it experiencing a(n) gap of $ . b. Suppose government uses countercyclical fiscal policy to close the gap. In order to achieve full employment AD would have to by $ . c. As a result of this change, the inflation rate would be %. Round your answer to 2 decimal places.

The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Real domestic output demanded (in billions) Price level Real domestic output supplied (in billions)$500 350 $3000$1000 300 $3000$1500 250 $2500$2000 200 $2000$2500 150 $1500$3000 150 $1000Refer to the above table. If the quantity of real domestic output demanded decreased by $500 and the quantity of real domestic output supplied increased by $500 at each price level, the new equilibrium price level and quantity of real domestic output would be:

Using the table below, graph the aggregate supply and demand curves and then answer three questions and graph an AD shift.  Real GDP (in $ Trillions)Price Level Supplied Demanded100 4 16110 10 15140 14 12200 15 6Instructions: Use the tools provided 'AS' and 'AD' to plot the aggregate supply and aggregate demand curves (plot 4 points total for each curve).

Assume the economy is closed and there is no government. The aggregate demand components are described below:C = 100 + 0:6Y (1)I = 200 (2)What is the mutiplier?

100 4 16110 10 15140 14 12200 15 6Instructions: Use the tools provided 'AS' and 'AD' to plot the aggregate supply and aggregate demand curves (plot 4 points total for each curve).Instructions: Enter your responses as a whole number.Using the information in the table and graph, answer the following questions.What is the equilibrium price level?What is the equilibrium output?$ trillion in real GDP.If the quantity of output demanded at every price level increases by $2 trillion, what happens to equilibrium output and prices?Output .Prices .Graph your answer to part c.Instructions: Use the tool provided 'AD1' to draw the new aggregate demand curve (plot 4 points total). PrevQuestion 8 of 12 Total8 of 12Visit question mapNext