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Using the hypothetical economy data in the table below, please answer the questions below. Please show the equations and work so that I can better understand how the answer is arrived at.
Amount of Real GDP Demanded, Billions
Price Level (Price Index)
Amount of Real GDP Supplied, Billions
$360
600
$1000
520
500
820
400
840
300
1020
Calculate the aggregate demand and supply, as well as its price level.
Then address the following:
What is the equilibrium price level and the equilibrium level of real output in this At what price level will aggregate supply equal aggregate demand? At what price level will demand fall below aggregate supply? If given a price level of 300, will aggregate demand exceed supply? If the aggregate demand schedule shifted by $20 billion to the right at every level, what would be the new equilibrium level of income?
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