(Solved): The table below shows aggregate demand and aggregate supply schedules in a hypothetical eco ...

The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Al equal to 0.33 and whose natural unemployment rate is estimated to be 4.5 percent. a. Draw a graph showing Algonquin's aggregate demand curve, $A_0$, and its aggregate supply curve, $AS$. PI aggregate demand curve and aggregate supply curve. (i) \begin{tabular}{|c|c|} \hline 160 & Tools \\ \hline 140 & $x$ \\ \hline 8120 & A \\ \hline \end{tabular} What is Algonquin's equilibrium price level and real output? The initial equilibrium price level and real output are and $\$$ billion. b. If the unemployment rate is 3 percent and inflation is low, is an expansionary or contractionary fiscal policy ne government changes taxes by $\$60$ billion, should taxes increase or decrease? By how much will the aggregate $d$ If the unemployment rate is 3 percent and inflation is low, by $\$60$ billion, these taxes should policy is needed. If Algonquin's gover The change in taxes will shift the aggregate demand curve by $\$$ place and your final answer to the nearest whole number. billion. Round your intermediate answer c. Fill in the Real GDP $A_1$ column in the above table and, on your graph, show the shift in aggregate demand to $A$ Algonquin's new equilibrium price level and real output? Is the final change in output greater or less than the shift demand curve? Plot only the endpoints of the aggregate demand curve (AD) $)$. The new price level and real output are and \$ billion. The change in output is than the shift in the AD curve: