Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Given the goods market and money market equations, determine the IS and LM, aggregate demand equations, draw the LRAS function and indicate the long run-short run equilibrium.

Suppose the economy of described by the following set of equations:

G = 1000 (M / P)^d = Y - 90 r
T = 1000 and Ms = 10,000
C = 500 + 0.80(Y - T ) P = 2
I = 1500 - 40 r

1.Determine the IS and LM equations.

2. Describe the Aggregate Demand equation

3.Assume that the short run supply function is given by P = 2, determine the equilibrium level of output. Represent this situation in a diagram.

4. Assume the output level described in part c is the corresponding long run equilibrium level of output.

5.Draw the LRAS function in the diagram above and indicate the long run-short run equilibrium.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920541

Have any Question? 


Related Questions in Business Economics

Klingon widgets inc purchased new cloaking machinery three

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $6.7 million. Klingon’s current balance sheet shows net fixed assets of $3.1 mil ...

Irr calculation determine the irr on the following projects

(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years b. An initial outlay of $10,000 resulti ...

Answer the following questions about break-even analysis 1

Answer the following questions about break-even analysis. 1. Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per we ...

Your manager has tasked you with producing a simple white

Your manager has tasked you with producing a simple white paper that describes at a high level how network monitors actually capture and report information about the state of a network and the nodes that are present on a ...

1 explain what is meant by david packards quote marketing

1) Explain what is meant by David Packard's quote "Marketing is far too important to leave to the marketing department" 2) Explain the role of SWOT analysis in determining a firm's objectives or goals.

Can someone create a simple a powerpoint presentation at

Can someone create a simple a PowerPoint presentation at least five slides in length identifying five different categories of application software? List a description of each type of software with advantages, disadvantag ...

Please let us access free resources to try at our institute

Please let us access free resources to try at our institute Jubail Technical Institute (www.jti.edu.sa). If it is approved by higher managment later, we can have deal or an agreement with you for further course of action ...

High levels gt 240 mgdl of cholesterol may increase the

High levels (> 240 mg/dl) of cholesterol may increase the risk of heart disease. The distribution of cholesterol in the blood among people of the same age and gender is approximately normal. Assume that for teenage boys, ...

Suppose you are studying the recent rise in shale energy

Suppose you are studying the recent rise in shale energy. You know the inverse private demand function for shale energy is P = 100 - Qd. The private supply of shale energy is P = Qs. However, shale energy can potentially ...

Suppose that a consumer is currently spending all of her

Suppose that a consumer is currently spending all of her income on 10 units of goods A and 5 units of goods on B. The price of A is $4.00 per unit, the price of good B is $10.00 per unit, the marginal utility of the last ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate