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Unformatted text preview: too; any economy has a demand
side and a supply side, as illustrated in
Exhibit 11-10. The demand side is represented by the aggregate demand curve,
which shows the quantity of goods and services that buyers are willing and able to buy at
different price levels. (Sometimes the quantity of goods and services is simply referred 304 Chapter 11 Measuring Economic Performance power. Kennedy earned the equivalent of $648,667 in today’s (2005)
dollars, and the president today
earns $400,000. In other words,
Kennedy was paid the equivalent of
$248,667 more than the president
today is paid.
Suppose a house cost
$45,000 in 1970, and
the CPI in 1970 was 37.8. What is
the price of the house in 2005 dollars (CPI in 2005 = 194.6)?
ABOUT IT to as output or as real GDP.) The supply
side is represented by the aggregate supply
curve, which shows the quantity of goods
and services, or output, that producers are
willing and able to supply at different price
levels. The equilibrium price level and equilibrium quantity of goo...
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- Winter '14