On the following graph, plot the aggregate demand curve that results from varying the price level from 110 to 130 to 150, holding all else equal. Hint: Real income and the quantity of output are equivalent. For example, a real income of $100 billion is the same as a quantity of output of $100 billion. PRICE LEVEL 160 150 140 130 120 110 + 100 90 0 200 300 400 500 600 QUANTITY OF OUTPUT (Billions of dollars) 100 700 800 O Aggregate Demand (AD) ?
On the following graph, plot the aggregate demand curve that results from varying the price level from 110 to 130 to 150, holding all else equal. Hint: Real income and the quantity of output are equivalent. For example, a real income of $100 billion is the same as a quantity of output of $100 billion. PRICE LEVEL 160 150 140 130 120 110 + 100 90 0 200 300 400 500 600 QUANTITY OF OUTPUT (Billions of dollars) 100 700 800 O Aggregate Demand (AD) ?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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