Essay
The following table shows the aggregate demand and aggregate supply schedules for the economy of Queen's Island
a)What are the equilibrium values of price and Real GDP?
b)Suppose Potential GDP is $1,600.What is the output gap for Queen's Island?
c)Assume that aggregate demand shift so such that economy of Queen's Island is at full employment.How and by how much does the aggregate demand change? What are the new equilibrium values of price and Real GDP?
d)Assume that aggregate supply shifts so that economy of Queen's Island is at full employment.How and by how much does the aggregate supply change? What are the new equilibrium values of price and Real GDP?
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a)Equilibrium price level is 110 and the...View Answer
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