plot the aggregate demand, Macroeconomics

Assignment Help:

The economy of Mainland has the following aggregate and aggregate supply schedules:

                              Real GDP Demanded                        Real GDP Supplied in the Short Run

                                                                                                   ($billion)

Price Level

     90                                  450                                                        350

   100                                  400                                                        400

   110                                  350                                                        450

   120                                  300                                                        500

   130                                  250                                                        550

   140                                  200                                                        550

(a)   Plot the aggregate demand and short run aggregate supply curves.

(b)   Determine Mainland's equilibrium or actual GDP and price level.

(c)   Mainland's long run GDP is $500 billion. Plot the long run aggregate supply curve on the same graph as Part (a) above.

(d)   Is Mainland at or above or below its natural rate of unemployment? Discuss.

(e)   Determine the physical limit of Mainland's economy.


Related Discussions:- plot the aggregate demand

Control of patulin, Control: In apples molded by Penicillium expansum, mos...

Control: In apples molded by Penicillium expansum, most of the patulin is confined to the region of damaged tissue and simply removing the lesions reduces the toxin by 90%, but i

Consumer price index, (Consumer Price Index)Given the following data, what ...

(Consumer Price Index)Given the following data, what was the value of the consumer price index in the base year? Calculate the annual rate of consumer price inflation in 2013 in ea

Assignment, derive the isoprofit functin

derive the isoprofit functin

What is the price elasticity of supply, What is the price elasticity of sup...

What is the price elasticity of supply? Price elasticity of supply: The price elasticity of supply is a measure of the receptiveness of the quantity of a good supplied to pr

Show the destruction of capital, Q. Show the Destruction of capital? De...

Q. Show the Destruction of capital? Destruction of capital, for instance, through a war, works in the opposite way. Marginal product of labor falls, GDP per capita falls and po

Assignment, Consider the economic data for Country A: Unemployment level of...

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

How are individual makes choices, How are individual makes choices? Fun...

How are individual makes choices? Fundamental principles behind the individual choices are as follows: 1. Resources are scarce . 2. The real cost of anything is what y

Question one hw, A small country can import a good at a world price of 10 p...

A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 20 + 10P The demand curve is D = 400 – 5P In addition, each unit of

Diseconomies of scale, What are the four managerial factors that lead to di...

What are the four managerial factors that lead to diseconomies of scale

Market for a particular type of computer memory chip, 1. Consider the marke...

1. Consider the market for a particular type of computer memory chip. Would you expect the long-run (own-price) elasticity of supply to be larger or smaller than the short-run elas

Write Your Message!

Captcha
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!

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