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Essentials of Economics 8th Edition by Bradley Schiller
Edition 8ISBN: 978-0073511399Essentials of Economics 8th Edition by Bradley Schiller
Edition 8ISBN: 978-0073511399 Exercise 4
The following schedule provides information with which to draw both an aggregate demand curve and an aggregate supply curve. Both curves are assumed to be straight lines.
( a )At what price level does equilibrium occur?
( b )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $700?
( c )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $500?
( d )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $300?
( e )Compared to the initial equilibrium ( a ), how have the outcomes in ( b ), ( c ), and ( d ) changed price levels or output?
( a )At what price level does equilibrium occur?( b )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $700?
( c )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $500?
( d )What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $300?
( e )Compared to the initial equilibrium ( a ), how have the outcomes in ( b ), ( c ), and ( d ) changed price levels or output?
Explanation
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The data is for aggregate demand and agg...
Essentials of Economics 8th Edition by Bradley Schiller
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