Thursday
April 24, 2014

Homework Help: Economics

Posted by Andrew on Wednesday, February 22, 2012 at 1:16am.

Consider an economy with the following aggregate demand(AD) and aggregate supply(AS) schedules. These schedules reflect the fact that, prior to the period we're examining, decisions makers entered into contracts and made choices anticipating that the price level would be P105.

AD(in trillions)-Price Level----SRAS(in trillions)
$5.1_____________95_____________$3.5
4.9______________100_____________3.8
4.7______________105_____________4.2
4.5______________110_____________4.5
4.3______________115______________4.8

a.) Indicate the quantity of GDP that will be produced and the price level that will emerge during this period.

b.)is the economy in long-run equilibrium? Why or Why not?

c.)How will the unemployment rate during the current period compare with this economy's natural rate of unemployment?

d.) What will tend to happen to resource prices in the future? How will this affect the equilibrium rate of output?

e.) Will the rate of GDP produced during this period be sustainable into the future? Why or why not?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - Consider an economy with the following aggregate demand(AD) and ...
Economics - If an economy is experiencing a recession will both aggregate demand...
economics - some study guide questions i am stumped on 1 uncertainty about the ...
economics - Consider an economy with the production function L^(1/3) a) Derive ...
Economics - Concern about international crisis has caused consumers to save ...
economics - On the aggregate demand graph if aggregate demand increases does the...
economics - On the aggregate demand graph if aggregate demand increases does the...
economics - 3. Consumer spending on durables falls, draw a graph to analyze the ...
Economics - One supply-side measure introduced by the Reagan administration was ...
economics - At an initial point on the aggregate demand curve, the price level ...

Search
Members