Business, 03.12.2019 03:31 chrisraptorofficial

Refer to the table below.
real output demanded, billions price level real output supplied, billions
506 112 513
508 106 512
510 100 510
512 94 507
514 88 502
suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level.
a) by what percentage will the price level increase? will this inflation be demand-pull inflation or will it be cost-push inflation?
b) if potential real gdp (that is, full-employment gdp) is $510 billion, what will be the size of the positive gdp gap after the change in aggregate demand?
c) if the government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:00, glowbaby123

Jodi is trying to save money for a down payment on a house. she invests $6,000 into an account paying 5.5% simple interest. for how long must she save if she needs $7,300 for the down payment? a. 2 years b. 3 years c. 4 years d. 5 years

Answers: 1

continue

Business, 22.06.2019 00:00, kluckey3426

Which statement is true of both presidential and parliamentary systems of government? a. the executive branch operates independently from the legislative branch. b. the members of the legislative branch are directly elected by the people. c. the head of government is chosen by members of his or her political party. d. the head of government is directly elected by the people

Answers: 1

continue

Business, 22.06.2019 04:10, chloeholt123

What is the difference between secure bonds and naked bonds?

Answers: 1

continue

Business, 22.06.2019 23:30, frankgore8496

What are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.

Answers: 1

continue

You know the right answer?

Refer to the table below.
real output demanded, billions price level real output supplied, bil...