Question : The table gives the aggregate demand and aggregate supply schedules : 1238120

The table gives the aggregate demand and aggregate supply schedules for a nation.

21) Based on the table above, equilibrium real GDP is

A) $10 trillion.

B) $9 trillion.

C) $8 trillion.

D) $7 trillion.

E) $6 trillion.

22) Based on the table above, the equilibrium price level is

A) 130.

B) 120.

C) 110.

D) 100.

E) 90.

23) Refer to the table above. If the price level is 120, then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________.

A) greater; rises

B) greater; falls

C) less; rises

D) less; falls

E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.

24) If the price level is 90, then the price level will ________ because ________.

A) either fall or rise; markets are unstable and macroeconomic equilibrium is difficult to predict

B) fall; the aggregate quantity demanded is less than the aggregate quantity supplied

C) rise; the aggregate quantity demanded is less than the aggregate quantity supplied

D) rise; the aggregate quantity demanded is greater than the aggregate quantity supplied

E) fall; the aggregate quantity demanded is greater than the aggregate quantity supplied

25) The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is

A) $25 billion.

B) $28 billion.

C) $22 billion.

D) $31 billion.

E) $34 billion.

26) The table above gives data for the nation of Pearl, a small island in the South Pacific. When the economy is at full employment the price level is

A) 130.

B) 120.

C) 110.

D) 140.

E) 150.

27) The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is

A) $16 billion.

B) $19 billion.

C) $22 billion.

D) $23 billion.

E) $17 billion.

28) The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is

A) $34 billion.

B) $31 billion.

C) $28 billion.

D) $25 billion.

E) $23 billion.

29) The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is ________, and the nation is now experiencing a(n) ________.

A) $22 billion; inflationary gap

B) $22 billion; recessionary gap

C) $28 billion; inflationary gap

D) $28 billion; recessionary gap

E) $25 billion; equilibrium

30) According to the figure above, which point or points correspond to full employment?

A) only point a

B) only point b

C) only point c

D) points a and b

E) points a, b, and c