The Following Are Aggregate Demand and Supply Schedules for a Hypothetical

question 105

Multiple Choice

The following are aggregate demand and supply schedules for a hypothetical economy.All figures are in $ billions.
Note: Potential GDP is 3,000.
-Refer to the information above to answer this question.Assume that technological change increases aggregate supply by 340.What would be the result?

• A)A new full employment level of Real GDP of 3,340 and lower prices.
• B)An inflationary gap of 340.
• C)A recessionary gap of 240.
• D)A new equilibrium of Real GDP of some indeterminate level depending on how much prices fell.
• E)A new full-employment level of Real GDP of 3,340 with no change in prices.

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Definitions:

Physical RAM

Refers to the actual hardware memory modules installed in a computer used to temporarily store data for quick access by the processor.

Memory Storage

Devices or media used to store digital data, such as SSDs, HDDs, and memory cards.

Registered Memory

Memory modules that have extra chips (registers) near the bottom of the module that delay all data transfers by one clock tick to ensure accuracy.

Buffered Memory

A type of memory in which the modules have extra chips (registers) that delay data transfers to ensure accuracy.