Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Q1. Consider an economy which is above full-employment equilibrium (natural rate of output) due to raise in AD. The prices of productive resources have not changed. With the help of graph, describe how the economy returns to long-run equilibrium, with no government intervention.

Q2. Consider an economy where the economists have estimated that last year's real GDP was $800 billion, equivalent to potential GDP. The price level was 105. Assume that this year the economist estimate that the potential GDP has raised by 10%. Though, actual real GDP has reduced by 5%, while the price level has as well reduced by 5%. Draw an AD-AS graph that shows last year's equilibrium, and also last year's demand, aggregate supply (short-run and long-run), price level, and real GDP level. Next, given the information above, show what has happened to the price level and level of real GDP this year (show this year's equilibrium), plus what has happened to the aggregate demand, short-run aggregate supply and the long-run aggregate supply since last year.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910192

Have any Question? 


Related Questions in Macroeconomics

Select a news article dated within the previous two months

Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class. Include at least one graph developed in our course. Possible concepts include ...

Suppose the economy is in long-run equilibrium with real

Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases the money supply by 6%. Illustrate the short run effe ...

Debeers became a monopoly by doing what how did they

DeBeers became a monopoly by doing what? How did they establish control of the market?

Economic policies for health promotion wellness and

Economic Policies for Health Promotion, Wellness, and Prevention In the United States, the health care system emphasizes health promotion, wellness, and prevention as a strategy to improve population health and lower per ...

Economic indicators assignmentfind the values of annual us

Economic Indicators Assignment Find the values of annual U.S. GDP, unemployment rate, inflation rate, government budget deficit and government debt in 2005 and 2015. Report the statistics for the two years in a table, ma ...

Thinking back on what you have learned in this course

Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.

Economic projectempirical project the research project

Economic Project Empirical Project The research project should be about 10 pages and should explain your data collection, model, and findings. Below is a quick guide to doing empirical research. Guide to doing an empiric ...

An accident has occurred causing 10000 in harm to the

An accident has occurred, causing $10,000 in harm to the victim.  The amount of harm done is undisputed and easy to prove; punitive damages are not applicable, so any damage award would be for exactly $10,000. This type ...

1 suppose you are hired to manage a small manufacturing

1. Suppose you are hired to manage a small manufacturing facility that produces Widgets. (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market ...

Consider vosburg v putney an 1891 wisconsin case putney

Consider Vosburg v. Putney, an 1891 Wisconsin case. Putney, age 11, kicked Vosburg, age 14, in the leg during school. The kick was not very hard - the jury found that "defendant, in touching the plaintiff with his foot, ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro