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Complete the following table:

Instructions: Enter your responses as whole numbers.

      Real Output Demanded (in $ billions) by  
Price
Level
Consumers + Investors + Government + Net Exports = Aggregate Demand Aggregate Supply
120 80   15   20   10   ? 320
110 92   16   20   12   ? 260
100 104   17   20   14     215
90 116   18   20   16     200
80 128   19   20   18     185
70 140   20   20   20     175
60 154   21   20   22     170


(a) What is the level of equilibrium real GDP?

$ billion

(b) What is the equilibrium price level?

$

(c) If full employment occurs at a real GDP of $200 billion, what kind of GDP gap exists?

  An inflationary GDP gap
  A recessionary GDP gap




(d) How large is that gap?

 

(e) Which macroeconomic problem exists here?

  Unemployment
  Inflation



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Kristelle Balando
Kristelle BalandoLv10
29 Sep 2019

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