Question: Please help with these macro questions The table shows the aggregate demand and short-run aggregate supply schedules of Lizard Island in which potential GDP is
Please help with these macro questions



The table shows the aggregate demand and short-run aggregate supply schedules of Lizard Island in which potential GDP is $600 billion. Real GDP Real GDP supplied Price demanded in the short run 1. Calculate the short-run equilibrium real GDP and price level. Level (billions of 2009 dollars) The short-run equilibrium real GDP is $ billion and the price level is 100 600 550 110 575 575 2. Does the country have an inflationary gap or a recessionary gap and what is its magnitude? 120 550 600 The country has 130 525 675 gap and its magnitude is $ billion. O A. an inflationary; 40 O B. an inflationary; 25 O C. a recessionary; 25 O D. a recessionary; 32 3. If real GDP demanded at each price level increases by $50 billion, what is the new short-run macroeconomic equilibrium and the output gap? The new short-run macroeconomic equilibrium is at a real GDP of $ billion and a price level of The economy has output gap. Click to select your answer(s).In the figure, the economy is at an equilibrium with real GDP of $20 trillion and a Price level (GDP price index, 2012 = 100) + price level of 110. At this point, there is Potential GDP AS O A. price stability. 130- O B. an above full-employment equilibrium. O C. an inflationary gap. 120- O D. a full-employment equilibrium. 110-. ............ O E. a recessionary gap. 100- 90- AD 19.0 19.5 20.0 20.5 21.0 21.5 22.0 Real GDP (trillions of 2012 dollars)Canada trades with the United States. Explain the effect of each of the following events on Canada's aggregate demand. When the government of Canada cuts income taxes, Canada's aggregate demand When the United States experiences strong economic growth, Canada's aggregate demand O A. decreases; does not change O B. decreases; increases O C. increases; increases O D. increases; does not change When Canada sets new environmental standards that require power utilities to upgrade their production facilities, Canada's aggregate demand O A. decreases O B. increases O C. does not change
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