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Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown in the following table.
a. Use the data above to graph the aggregate demand and aggregate supply curves. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also necessarily the full-employment real output?
Amount of Real GDP, Demanded Billions
Price Level (Price Index)
Amount of Real GDP, Supplied Billions
$100
300
$450
200
250
400
150
500
100
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