Assume That The Economy Is At Full Employment Equilibrium At Point A Using The Following Graph As A Reference Calculat 1 (20.77 KiB) Viewed 29 times
Assume That The Economy Is At Full Employment Equilibrium At Point A Using The Following Graph As A Reference Calculat 2 (80.27 KiB) Viewed 29 times
Assume that the economy is at full-employment equilibrium at point A. Using the following graph as a reference, calculate the impact of a sudden decline in consumer confidence that reduces autonomous consumption by $200 billion at the price level PF Assume MPC-0.5. Price Level (average price) SEEREE9882 100 90 80 70 60 Pr 50 40 30 20 10 D 200 250 300 350 400 450 500 550 600 650 700 Real Output (in $ billions per year)
Prici EE 20 10 0 200 250 300 350 400 450 500 550 600 650 700 QF Real Output (in $ billions per year) AD Instructions: Enter your responses as a whole number. a. What is the new equilibrium level of real output? Tbillion b. How large is the real GDP gap? $ billion c. Did average prices increase or decrease? Decrease O Increase
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