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Given the above information, in this hypothetical economy what is the equilibrium price level and the equilibrium level of real output? Using Excel, graph both the aggregate demand and aggregate supply curves.
Amount of Real GDP Demand (in billions)
Price Level (Price Index) Amount of Real GDP Supplied (in billions) $180 300 $500 260 250 400 300 200 300 420 150 200 560 100
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Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market
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