Aggregate demand curve and an aggregate supply curve

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The following schedule provides information with which to draw both an aggregate demand curve and an aggregate supply curve. Both curves are assumed to be straight lines.

(a) At what price level does equilibrium occur?

(b) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $700?

(c) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $500?

(d) What curve would have shifted if a new equilibrium were to occur at an output level of 700 and a price level of $300?

Reference no: EM132492023

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