How could we return to long run equilibrium

Reference no: EM13181925

In a fully labeled graph, illustrate the following scenario:

If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event. What happens to price levels, output and employment in the short run?

How could we return to long run equilibrium? You should identify a specific policy that will shift the economy back to the long run equilibrium. Which curve in your model is affected by your policy? What are the consequences of your policy in terms of output, employment and inflation?

Price levels (up, down, same) _____

Output (up, down, same) _______

Employment (up, down, same) _____

POLICY:

Curve affected: ______

Price levels (up, down, same) _____

Output (up, down, same) ______

Employment (up, down, same) _______

Reference no: EM13181925

Questions Cloud

Calculate the total consumers surplus : Calculate the market demand. Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus. Calculate the total consumers surplus using individual ..

State the half life for the beta decay of strontium : How many atoms of 90Sr are in a 220.0 mL glass of milk with 1.25 Bq/L of 90Sr radioactivity? (The half life for the beta decay of strontium

State what is the temprature at the condenser outlet : degress Celcius and 1 atm enters a coller in which 55% of the feed is condensed at a constant pressure. What is the temprature at the condenser outlet and explain?

Is demand elastic-inelastic or unit elastic : Find the equilibrium price and quantity. Find the elasticity of demand and the elasticity of supply, evaluated at the equilibrium price and quantity. Is demand elastic, inelastic, or unit elastic? Is supply elastic, inelastic, or unit elastic?

How could we return to long run equilibrium : If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..

Explain what quantity of heat is needed to convert : Propanol freezes at -89.5 degrees C and boils at 82.3 degrees C. What quantity of heat is needed to convert 10.0 g of solid 2-propanol at -89.5 degrees C to a vapor at 82.3 degrees C?

Explain what is nitroglycerin''s molar mass : What is Nitroglycerin's molar mass if the addition of 0.454 g of nitroglycerin to 100.0 g of benzene changes the solution's vapor pressure to 94.85 mm Hg?

State the aqueous electrolytic solution : The aqueous electrolytic solution (d= 1.230 g/cm^3) in a typical automotive battery contains approximately 368 g of hydrogen sulfate (H2SO4, sulfuric acid, MM= 98.07948 g/mol) per liter. Calculate the following concentrations

What is the break-even sales price per unit : A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing..

User Account

All Pages