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

All else held constant is a major problem facing all

"All else held constant" is a major problem facing all methods of estimating the demand for business products. Compare and contrast how the marketing and economic approaches deal with this problem. Please use examples.

Explain the events that lead to the most recent financial

Explain the events that lead to the most recent financial crisis. In your opinion, who is to blame?

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 ...

Questionas part of a marketing research committee for your

Question: As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-word research paper about current microeconomic thought and theory. Use  Principles of Microec ...

Intermediate macroeconomics assignment1 consider the

Intermediate Macroeconomics Assignment 1. Consider the Keynesian Cross model, where consumption C = 100 + 0.75(Y - T), investment I = 175, and government expenditure G = 100 and taxes T = 100. (a) Compute the equilibrium ...

Assignementnow imagine your team is the reelection campaign

Assignement Now, imagine your team is the reelection campaign committee for Pat Shoo-In, who is your local representative in the U.S. House of Representatives. Your team needs to prepare Pat for an upcoming debate by cre ...

1 which countries consume the most dung and how do the

1. Which countries consume the most dung and how do the energy statistics in the BP Statistical Review account for it? 2. Explain why consumption of a particular energy source typically ceases long before the stock of su ...

You are told that 50 cents out of every dollar pumped into

You are told that 50 cents out of every dollar pumped into the economy goes toward consumption (as opposed to saving). Estimate the GDP impact of a positive change in government spending that equals $15 billion.

Real estate and the strength of the economy youve been

Real Estate and the Strength of the Economy You've been debating on making a purchase for yourself.  This is a product you've wanted for a while, but one that requires budgeting because you will be making monthly payment ...

This question concerns labor mobility between countries a

This question concerns labor mobility between countries A and B. a. Say that country A's MPL = -L + 10 and country B's MPL = 2L + 1. What would be the optimal amount of L? Note: country B's MPL is written in terms of the ...

  • 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