The table below shows the aggregate supply and aggregate demand schedules for the small economy of Pearl, an island in the South Pacific, measured in billions of 2012 dollars. Price Level Aggregate Supply Aggregate Demand 150 34 16 140 31 19 130 28 22 120 25 25 110 23 28 Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.What is the new equilibrium GDP as a result of the supply shock? Question 15Answer a. $22 billion b. $23 billion c. $16 billion d. $19 billion e. $17 billion
The table below shows the aggregate supply and aggregate demand schedules for the small economy of Pearl, an island in the South Pacific, measured in billions of 2012 dollars. Price Level Aggregate Supply Aggregate Demand 150 34 16 140 31 19 130 28 22 120 25 25 110 23 28 Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.What is the new equilibrium GDP as a result of the supply shock? Question 15Answer a. $22 billion b. $23 billion c. $16 billion d. $19 billion e. $17 billion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The table below shows the aggregate supply and aggregate demand schedules for the small economy of Pearl, an island in the South Pacific, measured in billions of 2012 dollars.
Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.
What is the new equilibriumGDP as a result of the supply shock?
| Aggregate Supply | Aggregate Demand | |
|---|---|---|
| 150 | 34 | 16 |
| 140 | 31 | 19 |
| 130 | 28 | 22 |
| 120 | 25 | 25 |
| 110 | 23 | 28 |
Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.
What is the new equilibrium
Question 15Answer
a.
$22 billion
b.
$23 billion
c.
$16 billion
d.
$19 billion
e.
$17 billion
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