What is Athabasca's equilibrium price level and real output? The initial equilibrium price level and real output are and $ b. If the unemployment rate is 7 percent and inflation is rising, is an expansionary or contractionary policy needed? If Athabasca's government changes its purchases by $20 billion, should these purchases increase or decrease? By how much will aggregate demand shift? billion. If the unemployment rate is 7 percent and inflation is rising, contractionary policy is needed. If Athabasca's government changes its purchases by $20 billion, these purchases should decrease The change in government purchases will shift the aggregate demand curve by $ intermediate answers to two decimal places. billion. billion. Round your c. Fill in the Real GDP AD₁ column in the above table and, on your graph, show the shift in aggregate demand to AD₁. What are Athabasca's new equilibrium price level and real output? Is the final change in output greater tham or less than the shift in the aggregate demand curve? Plot only the endpoints of the aggregate demand curve (AD₁). The new price level and real output are and $ The change in output is less than the shift in the AD curve.

What is Athabasca's equilibrium price level and real output? The initial equilibrium price level and real output are and $ b. If the unemployment rate is 7 percent and inflation is rising, is an expansionary or contractionary policy needed? If Athabasca's government changes its purchases by $20 billion, should these purchases increase or decrease? By how much will aggregate demand shift? billion. If the unemployment rate is 7 percent and inflation is rising, contractionary policy is needed. If Athabasca's government changes its purchases by $20 billion, these purchases should decrease The change in government purchases will shift the aggregate demand curve by $ intermediate answers to two decimal places. billion. billion. Round your c. Fill in the Real GDP AD₁ column in the above table and, on your graph, show the shift in aggregate demand to AD₁. What are Athabasca's new equilibrium price level and real output? Is the final change in output greater tham or less than the shift in the aggregate demand curve? Plot only the endpoints of the aggregate demand curve (AD₁). The new price level and real output are and $ The change in output is less than the shift in the AD curve.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 14E

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