AD/AS Model for economics

[Mr Davis 97]

Homework Statement

If the AD curve intersects the AS curve in the intermediate section of the AS curve, can you calculate the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? If not, what additional information would you need?

Homework Equations

The Attempt at a Solution

I'm not sure if anyone could help me with this, since this forum doesn't have a specific section for economics, but I've tried for about two hours to figure out what the answer is, which I'm assuming is simple. I've looked around in my textbook and on the internet to no avail.

 

[Ray Vickson]

Homework Statement

If the AD curve intersects the AS curve in the intermediate section of the AS curve, can you calculate the increase in real output in the AD/AS model resulting from the $100 million increase in government spending? If not, what additional information would you need?

Homework Equations

The Attempt at a Solution

I'm not sure if anyone could help me with this, since this forum doesn't have a specific section for economics, but I've tried for about two hours to figure out what the answer is, which I'm assuming is simple. I've looked around in my textbook and on the internet to no avail.

Perhaps some of us could help, but we are not allowed to do so (nor would I be inclined to) on the basis of what you have submitted. PF Rules require you to do work on the problem first, and ask for help where you are stuck. Besides that you need to define AC and AC curves. Some of us can guess what they are, but we should not need to.