Q3:(30 marks)Price LevelAggregate DemandShort-run Aggregate SupplyLong-run Aggregate Supply(Billions of 2010 dollars)(Billions of 2010 dollars)(Billions of 2010 dollars)100900100600105800200600110700300600115600400600120500500600125400600600130300700600The table above shows the aggregate demand,short-run aggregate supply,and long-runaggregate supply of an economy.a)Find out the short-run equilibrium output and price level.(6 marks)b)Give an example to explain the cause of the below full-employment short-run equilibrium.(6marks)c)Explain how the economy moves toward its new long-run equilibrium with proper figures.(12marks)d)Suppose that the full-employment output rises to 800 due to technological improvement.Findthe new long-run equilibrium price level and output.(6 marks)
