Refer to the data in the table given below. Suppose that the present equilibrium

Question

Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $235, and that data set B represents the relevant aggregate supply schedule for the economy.

a. What must be the current amount of real output demanded at the 100 price level?

Real output demanded = $

b. If the amount of output demanded increases by $25 at the 100 price level shown in B, what will be the new equilibrium real GDP?

The new equilibrium level of real GDP = $

In business cycle terminology, what would economists call this change in real GDP? (Click to select)RecessionExpansion

(A) (B) (C) Price Level Real
GDP Price
Level Real
GDP Price
Level Real
GDP 110 285 100 210 110 235 100 260 100 235 100 235 95 235 100 260 95 235 90 210 100 285 90 235

Explanation / Answer

The demand will be $210 $260 Expansion

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