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Information about an economy

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Reference no: EM132302822

Question:

1) You are given information about an economy that, at equilibrium expenditures, the following table applies

State: 1 2 3

Price level: 159.0 153.75 151.5

Real output: $950 billion $1,000 billion $1,030 billion

Further, assume that the slope of the AE curves is 0.5.  Graphically depict this situation in the Aggregate Expenditure model and, then, derive three points on the AD curve. Also, please label both the axes and all three of your AE curves for full credit.

Reference no: EM132302822

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