Question

Answer the following questions on the basis of the three sets of data for the country...

Answer the following questions on the basis of the three sets of data for the country of North Vaudeville:

(A) (B) (C)
Price Level Real GDP Price Level Real GDP Price
Level		 Real
GDP
110 280 100 205 110 230
100 255 100 230 100 230
95 230 100 255 95 230
90 205 100 280 90 230


a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville?

The data in (Click to select)CAB

Which set of data illustrates aggregate supply in the short-run in North Vaudeville?

The data in (Click to select)ABC

Which set of data illustrates aggregate supply in the long-run in North Vaudeville?

The data in (Click to select)CAB

b. Assuming no change in hours of work, if real output per hour of work increases by 20 percent, what will be the new levels of real GDP in the right column of A?

Instructions: Round your answers to two decimal places.

Price level 110: New output =

Price level 100: New output =

Price level 95: New output =

Price level 90: New output =

Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)increasedecrease

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: -

(A) Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville?

The data in A because both price and GDP are increasing

Which set of data illustrates aggregate supply in the short run in North Vaudeville?

The data in B where Real GDP is increasing but prices are sticky and so they fixed

Which set of data illustrates aggregate supply in the long run in North Vaudeville?

The data in C because Real GDP is fixed and is not related to price level.

(B) Increase respective real GDP by 20%

Price level 110: New output = 280 + 56 = 336

Price level 100: New output = 255 + 51 = 306

Price level 95: New output = 230 + 46 = 276

Price level 90: New output = 205 + 41 = 246

(C) The values reflect an increase in aggregate supply because it shifts up at every price level

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3) Answer the following questions on the basis of the three sets of data for the...
3) Answer the following questions on the basis of the three sets of data for the country of North Vaudeville: A B C Price Level Real GDP Price Level Real GDP Price Level Real GDP 110 275 100 200 110 225 100 250 100 225 100 225 95 225 100 250 95 225 90 200 100 275 90 225 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? The short run? The long...
Refer to the data in the table given below. Suppose that the present equilibrium price level...
Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $215, and that data set A represents the relevant aggregate supply schedule for the economy. (A) (B) (C) Price Level Real GDP Price Level Real GDP Price Level Real GDP 100 215 110 240 110 290 100 240 100 240 100 265 100 265 95 240 95 240 100 290 90 240 90 215 a. What...
Suppose that the table below shows an economy’s relationship between real output and the inputs needed...
Suppose that the table below shows an economy’s relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 300.00 $400 225.00   300 150.00   200 Instructions: Round your answers to 2 decimal places. a. What is the level of productivity in this economy? . b. What is the per-unit cost of production if the price of each input unit is $4? $. c. Assume that the input price increases from $4 to $5 with no...
How might macroeconomic equilibrium be affected by the following events. Describe in words or draw a...
How might macroeconomic equilibrium be affected by the following events. Describe in words or draw a well labeled diagram. a) a stock market crash                                                b) the election of a new president c) severe food crop failures in Canada d) a spike in oil prices Complete the following table: Real Output Demanded (in $ billions) by: Price Level Consumption Investment Government Net Exports Agg’t Demand Agg’t Supply 140 90 50 50 6 300 130 100 70 50 10 270 120 110...
Price Level Aggregate Demand Short-Run Aggregate Supply 120 8,250 9,700 115 8,300 9,750 110 8,400 9,700...
Price Level Aggregate Demand Short-Run Aggregate Supply 120 8,250 9,700 115 8,300 9,750 110 8,400 9,700 105 8,500 9,600 100 8,600 9,500 95 8,700 9,300 90 8,800 8,800 85 8,900 8,000 80 9,100 7,000 Return to the original values of aggregate demand and short-run aggregate supply. Assume potential GDP decreases to 7,000. Graph the aggregate demand curve, short-run aggregate supply, and the new potential GDP. Be sure to describe where the economy is operating in the short-run relative to where...
Which of the following are determined by the intersection of aggregate demand and short run aggregate...
Which of the following are determined by the intersection of aggregate demand and short run aggregate supply? (Select all that apply) Select all that apply: Price level Inflation Real GDP Potential GDP
This question explores equilibrium in the aggregate demand and aggregate supply model. You will use schedules...
This question explores equilibrium in the aggregate demand and aggregate supply model. You will use schedules for an aggregate demand line and an aggregate supply line to identify the equilibrium price level and real GDP in a macroeconomy. Below, you are provided the schedules for an aggregate demand line and an aggregate supply line. Price Level (Consumer Price Index) Aggregate Demand Real GDP (billions of dollars) Aggregate Supply Real GDP (billions of dollars)    80 $11 $ 8    90...
Refer to the table given below. Suppose that aggregate demand increases such that the amount of...
Refer to the table given below. Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level. Real Output Demanded (Original) Price Level Real Output Supplied $506 116 $513 508 108 512 510 100 510 512 92 507 514 84 502 a. By what percentage will the price level increase? percent b. Will this inflation be demand-pull inflation or will it be cost-push inflation? (Click to select)Demand-pull inflationCost-push inflation c....
A series of natural disasters like fires, floods and earthquakes in the short run could cause...
A series of natural disasters like fires, floods and earthquakes in the short run could cause Demand shocks and inflation Supply shocks and inflation Demand shocks and deflation Supply shocks and deflation Non of the above to happen 2) In the country of Laurenstan, an island nation previously closed to contact with the rest of the world, the citizens tend to spend 90% of any increase in income. Based on this, if a traveler from the outside were to visit...
1.   Which one of the following shifts the aggregate demand curve leftward? Select one: a. An...
1.   Which one of the following shifts the aggregate demand curve leftward? Select one: a. An increase in the wage rate. b. An increase in the price level. c. An increase in expected deflation. d. A decrease in taxes. e. A decrease in the interest rate. 2.   Consider an economy starting from a position of full employment. Which one of the following changes does not occur as a result of an increase in aggregate demand? Select one: a. Real GDP...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT