a. If the price level in this economy were $1.20, the aggregate expenditures (AE) at each real

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a. If the price level in this economy were $1.20, the aggregate expenditures (AE) at each real GDP would be those shown in column 2 and the equilibrium real GDP would be $________.
b. If the price level were $1.00, the aggregate expenditures at each real GDP would be those shown in column 3 and the equilibrium real GDP would be $________.
c. If the price level were $0.80, the aggregate expenditures at each real GDP would be those shown in column 4 and the equilibrium real GDP would be $________.
d. Show in the following schedule the equilibrium real GDP at each of the three price levels.
Price level __________Equilibrium real GDP
$1.20..............................$___________
1.00................................____________
0.80................................____________
(1) This schedule is the aggregate (demand, supply) ________ schedule. (2) The equilibrium real GDP is (directly, inversely) ________ related to the price level.
3 AE 1.00 Real GDP AE 1.20 AEO.80 $2,100 $2,110 $2,130 $2,150 2,220 2,200 2,200 2,240 2,330 2,300 2,290 2,310 2,380 2,42
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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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