Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Discussion on Potential GDP with diagrams

1. Consider an economy which is above full-employment equilibrium (natural rate of output) due to an increase in AD. Prices of productive resources have not changed. With the help of a graph, discuss describe how the economy returns to long-run equilibrium, with no government intervention.

2. Consider an economy where economists have estimated which last yr's real GDP was $800 billion, equal to potential GDP. The price level was 105. Suppose which this yr the economist estimate which potential GDP has increased by 10 percent. describe however, actual real GDP has decreased by 5 percent, while the price level has also decreased by 5 percent. Draw an AD-AS graph which describe how last yr's equilibrium, as well as last yr's demand, aggregate supply (short-run also long-run), price level also real GDP level. Next, given the information above, describe how Illustrate what has happened to the price level also the level of real GDP this yr( describe how this yr's equilibrium), plus Illustrate what has happened to aggregate demand, short-run aggregate supply also long-run aggregate supply since last yr.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916520

Have any Question? 


Related Questions in Business Economics

Calculate total investment for this nation for the

Calculate total investment for this nation for the year. Calculate GDP for this nation for the year. Businesses spent $2800 on factories and equipment used in production Households spent $1500 on services Households spen ...

Present and future values of a cash flow stream an

PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investment ...

Football coach ira blooper has just been fired as head

Football coach Ira Blooper has just been fired as head coach at a large university. His buyout amount is $7.5 million, and Blooper will be repaid (as per his contract) in monthly instalments over the next 4 years. If the ...

Answer the following questions in essay format be specific

Answer the following questions in essay format. Be specific in your answer. Explain the various impacts of an import tariff in small nations vs. large nations. What are the three main reasons governments prefer using a t ...

Connect andrew carneiges wealth and its issues and mother

Connect Andrew Carneige's Wealth and it's Issues and Mother Jones' March of the Mill Children to a larger theme or idea. How do these two documents relate to each other? Wealth and it's Issues talks about how Carneige be ...

Johannes has a utility function given by uxyxy where x is

Johannes has a utility function given by U=xy/(x+y) where x is the amount of product 1 consumed per period and y is the amount of product 2 consumed per period. Johannes’ monthly income is $200. if the first 50 units of ...

International monetary fund imf quotas refer toa the amount

International Monetary Fund? (IMF) "quotas" refer to A. the amount of foreign exchange reserves that each member country is obligated to hold at its central bank. B. the fixed amount of borrowing that each country is all ...

Yoursquore given the following individual demand tables for

You’re given the following individual demand tables for comic books. a. Calculate market demand. Instructions: Enter your responses in the table below. Price John Liz Alex DMarket $2 10 18 28 4 9 16 24 6 8 14 20 8 7 12 1 ...

Of the four industry structures we discussed monopoly

Of the four industry structures we discussed (monopoly, competition, oligopoly, monopolistic competition), very briefly what is the main advantage and disadvantage of each? Do you see a preferred/ideal industry structure ...

Competition amp market structure1read the disney case and

Competition & Market Structure: 1. Read the Disney Case and do the following: Draw the demand curve (downward sloping) for Disneyland illustrating the change in demand from 1980 to 1984. Show the distinction between chan ...

  • 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