these questions are content based. The material needed to answer these questions will be in the textbook chapters and the textbook should be the only source of replying to these questions. At the end of each response, cite the reference of your response. You need to cite, if it’s an e-book or textbook, chapter number, and page numbers. For example: (Textbook, Chapter 5, pages 52, 54-56) DON’T copy the question on to the document that you’re submitting as copying the question increases the similarity proportion. You will only use textbook to answer content-based questions. Outside sources are not allowed to answer these questions.
TEXTBOOK:Ch 13-14 I provided pictures of the textbook in a link and uploaded them
Foundations of Macroeconomics, 9th Edition by Robin Bade and Michael Parkin.
1. A government policy maker suggests “Double the money supply and U.S. citizens real income will double.” In the long run, is this policy advice correct? Explain why or why not?2. Based on the table belowPrice Level (2019 = 100) Quantity of Real GDP demanded (trillion of 2019 dollars) Quantity of Real GDP supplied (trillion of 2019 dollars)115 6.8 12.0110 9.4 11.0105 10.0 10.0100 10.6 9.095 11.2 8.090 11.8 7.0a. What is the equilibrium price level and real GDP?
b. If potential GDP is $11 trillion, what does that imply about the economy’s level of employment?
c. If potential GDP is $9 trillion, what does that imply about the economy’s level of employment?
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