Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded Output Supplied (Aggregate Demand) (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 $800 100 100 Aggregate Supply and Demand 200 900 900 900 900 00 Real Output (quantity per year) 800 006, Tools / AD AS 0 Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have shifted to the left. O AD would have shifted to the right c. What curve would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $200? O AS would have shifted to the left. O AD would have shifted to the left. OAS would have shifted to the right. AD would have shifted to the right.
Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded Output Supplied (Aggregate Demand) (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 $800 100 100 Aggregate Supply and Demand 200 900 900 900 900 00 Real Output (quantity per year) 800 006, Tools / AD AS 0 Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have shifted to the left. O AD would have shifted to the right c. What curve would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $200? O AS would have shifted to the left. O AD would have shifted to the left. OAS would have shifted to the right. AD would have shifted to the right.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 8.2IP
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Transcribed Image Text:Connect assignment O
es
Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph.
Output Demanded
(Aggregate Demand)
Output Supplied
(Aggregate Demand)
Price Level
600
100
Price Level (average price)
Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the
endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines.
900
800
700
600
500
400
300
200
100
0
0
$700
100
Aggregate Supply and Demand
200
$800
100
900 900 900 900 90 900 900
700
Real Output (quantity per year)
Instructions: Enter your response as a whole number.
a. What is the equilibrium price level?
$
Tools
AD
D
AS
e
b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600?
O AS would have shifted to the right.
O AS would have shifted to the left.
O AD would have shifted to the left.
O AD would have shifted to the right
c. What curve would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $200?
O AS would have shifted to the left.
O AD would have shifted to the left.
O AS would have shifted to the right.
O AD would have shifted to the right.
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