The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Acadia (AS) Aggregate Demand and Aggregate upply Sehedules for Acadia Real GoP (ADO) (AD11 KASO) Price Level (2012 -100) (2012 billions) 240 150 200 230 130 220 220 120 190 240 190 110 210 160 100 230 280 120 170 280 270 240 210 120 260 b. Initially ADo and ASo are the relevant schedules The equilibrium price level is 120 and equilibrium real output is $ 230 billion up if the price level is 140 then real output is $ 270 billion, real expenditures are $ 190 billion, and there is an unintended increase in inventories. This pushes the price level the price level is 110 then real output is $180 billion, real expenditures are $ 250 billion, and there is an unintended in Inventories. This pushes the price level c. Now aggregate demand shifts from ADo to AD, while aggregate supply remains at ASO decrease up Aggregate demand has undergone an increase . As a result the equilibrium price level stays the same and has a value of 130 while equilibrium real output increases and has a value of 260 bilion . Now aggregate supply shifts from ASo to AS, while aggregate demand remains at ADO, Aggregate supply has undergone a short-tun decrease As a result the equilibrium price level stays the same and has a value of 120 While equilibrium toal output increases and has a value of $ 240 billion