Answer the following questions on the basis of the three sets of data for the country of North Vaudeville: (A ) ( B ) ( C ) (A) (B) (C)
Price level Real GDP Price level Real GDP Price level Real GDP
110 275 100 200 110 225
100 250 100 225 100 225
95 225 100 250 95 225
90 200 100 275 90 225
a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville?
The data in : (A or B or C).
Which set of data illustrates aggregate supply in the short run in North Vaudeville? The data in : (B or C or A).
Which set of data illustrates aggregate supply in the long run in North Vaudeville? The data in : (A or B or C).
b. Assuming no change in hours of work, if real output per hour of work decreases by 10 percent, what will be the new levels of real GDP in the right column of B?
Instructions: Round your answers to 2 decimal places.
With a price level of 110, new output =
With a price level of 100, new output =
With a price level of 95, new output =
With a price level of 90, new output =
Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Decrease or Increase).