The table below shows the aggregate supply and aggregate demand schedules for the small economy of Pearl, an island in the South Pacific, measured in billions of 2012 dollars. Price Level Aggregate Supply Aggregate Demand 150 34 16 140 31 19 130 28 22 120 25 25 110 23 28 Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.What is the new equilibrium GDP as a result of the supply shock? Question 15Answer a. $22 billion b. $23 billion c. $16 billion d. $19 billion e. $17 billion

The table below shows the aggregate supply and aggregate demand schedules for the small economy of Pearl, an island in the South Pacific, measured in billions of 2012 dollars. Price Level Aggregate Supply Aggregate Demand 150 34 16 140 31 19 130 28 22 120 25 25 110 23 28 Suppose there is a negative supply shock that decreases the aggregate supply by $6 billion at each price level.What is the new equilibrium GDP as a result of the supply shock? Question 15Answer a. $22 billion b. $23 billion c. $16 billion d. $19 billion e. $17 billion

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.3: The Aggregate Demand Curve

Problem 3QQ

See similar textbooks

Price Level	Aggregate Supply	Aggregate Demand
150	34	16
140	31	19
130	28	22
120	25	25
110	23	28

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