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15 Jan 2019
Refer to the table given below. Suppose that aggregate demand increases such that the amount of real output demanded rises by $15 billion at each price level.
Real Output Demanded (Original)
Price
Level
Real Output
Supplied
$500
112
$515
505
106
512
510
100
510
515
94
507
520
88
500
1. By what percentage will the price level increase?
2. If potential real GDP (that is, full-employment GDP) is $510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? In Billions?
Refer to the table given below. Suppose that aggregate demand increases such that the amount of real output demanded rises by $15 billion at each price level.
Real Output Demanded (Original) | Price | Real Output |
$500 | 112 | $515 |
505 | 106 | 512 |
510 | 100 | 510 |
515 | 94 | 507 |
520 | 88 | 500 |
1. By what percentage will the price level increase?
2. If potential real GDP (that is, full-employment GDP) is $510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? In Billions?
Elin HesselLv2
16 Jan 2019