What will happen to price if ad increases enough to restore

Assignment Help Econometrics

Reference no: EM13222158

Use the following data to answer the following question:

Price level 10 20 30 40 50 60 70 80 90 100

Real GDP $500 600 680 750 820 880 910 940 960 970
supplied
Real GDP $960 920 880 840 800 760 720 680 640 600
Demanded

(a) If full employment occurs at real output of $880, how large is the real GDP gap? 70
(b) How large is the AD shortfall? 120

( c) What will happen to the price if AD increases enough to restore full employment? Inflation

(d) Assuming MPC=0.75, how will macro equilibrium change if the government purchases inrease by $20? Demand will shift to the right

Reference no: EM13222158

Questions Cloud

State what volume of the solution should be diluted to water : in order to make a solution that i s0.030 M in Cu SO4 what volume of the above solution should be diluted to 5.00 mL with water?

Will both julia and jacque be better off if julia pays : Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..

State a complete and balanced net ionic equation : For the following aqueous reaction, write a complete and balanced net ionic equation for MnS + HBr. And name states.

Define the mass propotion of mg : the mass propotion of Mg:N=18:7. if 3.60 g reacts with 4.20 g N2 gas so the mass of product Mg3N2 is?

What will happen to price if ad increases enough to restore : (a) If full employment occurs at real output of $880, how large is the real GDP gap (b) How large is the AD shortfall ( c) What will happen to the price if AD increases enough to restore full employment Inflation (d) Assuming MPC=0.75, how will macro..

What is meant by the term integrated pest management : Tremendous development in the arid West of the United States over the past few decades, creating demands for water. How should these demands be met? Should there be limits to this type of developments? What kinds of limits, if any?

State van der waals pressure of ethane gas at temperature : What the Van der Waals Pressure of ethane gas at temperature of 500K and Molar Volume of 7.28 x 10^-5 m^3/mol?

Discuss how or if mrp and jit affect pac differently : Discuss how or if MRP and JIT affect PAC differently. Do you view these impacts as positive or negative? Why?

Identify at least one management goal for fannie mae : Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual. Explain the relationship between these companies. Explain in your own words what happened with these companies which caused an international financial crisis.

User Account

All Pages