Question

Assume That A X C Assume That x C Assume That. X c Assume That. X c Get Homeworl x C Assume That x C PROBLEMS 1. x + - 0 X → C newconnect.mheducation.com/flow/connect.html Polo Apps https://my.pcc.edu WebAssign - MyLab & Mastering... EPCC blackboard Pharmacists: Occu... Pharmacy: UTEP - Pharmacists: Colleg... attina Hesdin WC Formatting Headin... » CH 33 HW 3 Calculation Problems Saved Help Save & Exit Submit You received partial credit in the previous attempt. Check my work View previous attempt 2 Refer to the table below. points (8 00:19:25 Real Output Demanded, Billions $506 508 510 512 514 Price Level 118 109 100 90 82 Real Output Supplied, Billions $513 512 510 507 502 eBook Ask References Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level. Instructions: Enter your answers as whole numbers a Rv what percentage will the price level increase? Mc Graw < Prev 2 of 2 - Next > Hill Education 11:06 PM Type here to search o 9 w 11/5/20192

Answer 1

Before increase , equilibrium output is 510 billion and equilibrium price level is 100.

When real output demanded rises by $7 billion at each price level ,then equilibrium output = $(506+7)=513 billion because then real output demanded and supplied are equal and the equilibrium price level is 118.

This implies that price level increase by [(118-100)/100]100 =18%