Refer to the data in the table that accompanies Problem 2. Suppose that the present equil
Refer to the data in the table that accompanies Problem 2. Suppose that the present equilibrium price level and level of real GDP are 100 and $225, and that data set B represents the relevant aggregate supply schedule for the economy.
a. What must be the current amount of real output demanded at the 100 price level?
b. If the amount of output demanded declined by $25 at the 100 price shown levels in B, what would be the new equilibrium real GDP? In business cycle terminology, what would economists call this change in real GDP?