What is the long-run real interest rate

Assignment Help Business Economics

Reference no: EM131101523

suppose that the aggregate expenditure curve can be expressed algebraically as AE=3,000 - 2,000r where AE is aggregate expenditures and r is the real interest rate expressed as decimal. You check the website of the Congressional Budget office and learn that the level of potential output is 2,900. What is the long-run real interest rate?

Reference no: EM131101523

Questions Cloud

Calculate the price elasticity of supply for copper : Suppose the current price of copper is $3 per pound and the quantity supplied is 200 pounds per day. If the price of copper falls to $2.50 per pound, the quantity supplied drops to 180 pounds per day. Use the midpoint formula to calculate the price e..

The economic concept of derived demand : Which of the following statements best illustrates the economic concept of derived demand?

Suppose that the aggregate expenditure curve : Suppose that the aggregate expenditure curve can be expressed algebraically as AE=3,000 - 2,000r where AE is aggregate expenditures and r is the real interest rate expressed as decimal. You check the website of the Congressional Budget office and lea..

Characteristic of the monopolistic competition market : Which of the following is a characteristic of the monopolistic competition market structure?

What is the long-run real interest rate : suppose that the aggregate expenditure curve can be expressed algebraically as AE=3,000 - 2,000r where AE is aggregate expenditures and r is the real interest rate expressed as decimal. You check the website of the Congressional Budget office and lea..

The price elasticity of demand for gasoline : The price elasticity of demand for gasoline is 0.5 and the price elasticity of supply for gasoline is 1.1. If demand rises by 25%, the price of gasoline will: The price elasticity of demand for wheat bread is 2.1 and the price elasticity of supply fo..

Consumer response as overall prices change in the market : Each of the following statements is related to the AD-AS model. Using the labels below, decide whether each statement refers to the aggregate demand curve, the short-run aggregate supply curve, or both. Represents a change in consumer response as ove..

Demand increases while supply decreases : If demand increases while supply decreases for a particular good,

Identify the primary economic decision makers : One way to understand how the economy works is the circular flow model. This model demonstrates the flow of resources, goods, services, and income between households and business through the resource market and the market for goods and services. Iden..

User Account

All Pages