Question: Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $225,

Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $225, and that data set B represents the relevant aggregate supply schedule for the economy.

(A) (B) (C)

Price Real Price Real Price Real

Level GDP Level GDP Level 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.What must be the current amount of real output demanded at the 100 price level?

b.If the amount of output demanded declines by $25 at the 100 price level shown in B, what will be the new equilibrium real GDP?

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