Calculate the long-run equilibrium values of r and p, Ask an Expert

Economics

Calculate the long-run equilibrium values of r and P, assuming that the potentiallevel of output (Y*) is equal to 3500 monetary units.

Use the IS/LM and AD/AS models to illustrate graphically the short-run and long-run equilibrium, and to explain how the economy moves from the short-run to the long-run equilibrium, if the two are different C =500 + 0.75(Y-T) (2)I = 375 - 25r (3)T = 500 (4)G = 500 (5)Ms=Md (6)Ms =1000 (7)Md/P = L(r,Y) = 0.5Y - 50r

Derive the IS, LM and AD curve and find the short run equilibrium but have now come to a halt. Would be very grateful if you could show me how to work this out im really stuck.

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9744044

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question positions on whether the constitution should be

Question: Positions on whether the Constitution should be amended to require a balanced budget reflect opposing views about whether such an amendment would be an appropriate solution to the problem of persistent federal ...

Assignment 1 this assignment will enable you to apply the

Assignment 1: This assignment will enable you to apply the determinants of supply and demand, market equilibrium, and price elasticity for a product This assignment will cover the following course outcomes: Describe and ...

Questions - 1 explain briefly about management

Questions - 1. Explain briefly about Management Competencies. 2. Explain briefly "Management Challenges in the Global Enterprise". 3. How to develop "High Performance Teams"? 4. Draw a "Motivation Model". What the best w ...

Question the competitive nature of the market influences

Question: The Competitive nature of the market influences labor markets outcomes. Explain and show graphically why a firm with monopoly power hires less labor than a firm hiring labor is a competitive market. Explain and ...

Question principles of macroeconomicsworksheet on keynesian

Question: Principles of Macroeconomics Worksheet on Keynesian Demand Management The economy of Trickstoland is currently producing $450 billion of output, while enduring 12% cyclical unemployment. The natural rate of une ...

Question - find a current example of a linear optimization

Question - Find a current example of a linear optimization model used in your industry. Describe the industry's needs, including any unique factors, how the linear optimization model was used, and the problem or challeng ...

Question develop a 12-slide microsoftreg powerpointreg

Question: Develop a 12-slide Microsoft® PowerPoint® presentation including detailed speaker notes or voiceover including the following: Describe the intervention and detail its history. Analyze the arguments for governme ...

Question - givensetup cost for a production equipment-625

Question - Given: Setup Cost for a production equipment-$625/ setup New setup cost -$25 per setup for a lot size of 100. Based on the data given above, answer the following questions. i. What was the lot size for the old ...

Question at the farmers market in irvine california the

Question: At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a supply and demand graph and answer ...

Question suppose there are two consumers labeled 1 and 2

Question: Suppose there are two consumers, labeled 1 and 2, each of whom has a dollar of money income which can be spent on either private good x or public good g. Assume that the dollar cannot be divided between the two ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert