User Account

All Pages

What are the price level and real gdp

Assignment Help Macroeconomics
Reference no: EM132501255

Potential GDP for the economy in the picture is $10 trillion dollars.

a. What are the price level and real GDP in the short run equilibrium?

b. Does this country have an unemployment problem or an inflation problem?

c. How will the economy self-correct (move to its long run path)??Assume there are no interventions from the policy makers.

d. What monetary policy action would you advise the central bank to take to fix the problem in (b) and what do you predict will be the effect of that action?

Reference no: EM132501255

Questions Cloud

Find the contribution margin for the current year : Compute the contribution margin for the current year and the projected year, and the fixed costs for the current year. (Assume that fixed costs will remain.)
Ideas of trade-comparative advantage : How do the arguments tie-in with ideas of trade/comparative advantage, as put forth by David Ricardo?
Compute the approximate internal rate of return : Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?
Calculate the us net international investment position : Why do some nations replace the domestic currency with a key currency such as the U.S. dollar? What are the benefits of dollarization
What are the price level and real gdp : Potential GDP for the economy in the picture is $10 trillion dollars. a. What are the price level and real GDP in the short run equilibrium?
ENG5031 Fault Detection, Isolation And Reconfiguration : ENG5031 Fault Detection, Isolation And Reconfiguration Assignment Help and Solution - University of Glasgow, UK. Construct an event tree diagram
Principles of economics : As a smart student of principles of economics, kindly advise muchuu to make a justified rational choice.
What management accounting tool is used for enabling : What management accounting tool is used for enabling an organisation to learn from its experience (information flows) when planning and controlling
How an economy may experience short run growth : Explain how an economy may experience short run growth in actual output, and describe two ways in which this may occur.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Periodically you hear of garbage strikes is garbage pickup

periodically you hear of garbage strikes. is garbage pickup a public good? does garbage create externalities? what

  Calculate estimates of average products and marginal product

Estimate your firm's short-run production function. Do the parameter estimates have the appropriate algebraic signs Are they statistically significant at the 5 percent level b. At what point do you estimate marginal product (MP) begins to fall

  Estimate an empirical demand function

Estimate an empirical demand function for one-month memberships using the data gathered from the firm's 24 clubs

  Renewed interest in the relationship

In recent years, labor economists have had renewed interest in the relationship between the job vacancy rate (open but unfilled job postings) and the unemployment rate.  This relationship is commonly represented by the "Beveridge Curve" (named aft..

  1 three commonly used methods of evaluating marketing

1. three commonly used methods of evaluating marketing programs are marketing metrics marketing dashboards andmarginal

  Is there a value to having public servants

In a time of fiscal restraint, politicians campaign on getting rid of "bureaucrats" who make government more inefficient and cost taxpayers more money. However, is there a value to having public servants? What does a bureaucracy do?

  Identify the differences between mediation and arbitration

Contrasting Identify the differences between mediation and arbitration. Which method do you think is more effective? Write a paragraph explaining your answer.

  Explain apparent contradiction of the heckscher-ohlin model

Even though their relative factor abundances differ widely both India and the US. What might explain this apparent contradiction of the Heckscher-Ohlin model?

  What are some actions you can take to decrease anxiety

Katya is a freshman with a 3.0 grade point average. She studies diligently, but experiences severe anxiety before tests because she doesn't believe that her efforts will make a difference. It is almost the end of the semester and Katya must do wel..

  Market equilibrium and the various governments

Explain why equilibrium of supply and demand is desirable and discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.

  What was it about each of the products that made your demand

Identify three separate things that you personally have purchased in the past month. Now, for each of those goods answer this question: If the price had been 50% higher would I still have bought that thing Or would I have said.

  Draw a production frontier for nation 2

Starting with nation 2 pregrowth production frontier, draw a production frontier for nation 2 showing neutral technical progress that doubles the productivity of labor and capital in the production of a. both commodity b. X commodity only c. Y commod..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd