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

Evaluate nominal wages, Q. Evaluate Nominal wages? Nominal wages ...

Q. Evaluate Nominal wages? Nominal wages W = (W/P).P The nominal wage is equal to the real wage times the price level. Because the real wag

What is trade liberalisation, What is Trade liberalisation Trade liber...

What is Trade liberalisation Trade liberalisation is the removal of barriers to trade. This has mainly taken the form of restrictions created by national governments like quot

Pros and cons of using monetary policy, The monetary system in any economy ...

The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is t

Model of labor market in as-ad model, Q. Model of labor market in AS-AD mod...

Q. Model of labor market in AS-AD model? Remember the model of labor market in AS-AD model with constant wages. On the y-axis, we had real wage and on x-axis, we had L. The res

Production possibilities table for consumer goods, To the right is a produc...

To the right is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specific assumptions is t

Market demand and market supply for fish, Consider a market for fish whose ...

Consider a market for fish whose market demand and market supply for fish is specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively. The equilibrium price and quantity is

Velocity and the quantity equation, when the income velocity of circulation...

when the income velocity of circulation (V) rises, why does the economy''s total output must rise?

About assignment, i have assignment due within less than 24 hours if i sub...

i have assignment due within less than 24 hours if i submit assignment can i get it back before 24 hours?

Estimate the probability density function, It is assumed that the hazaed ra...

It is assumed that the hazaed rate for a pressure valve is given by h(t)= 1/5+t. 1. What is the cumulative probability function of failure F(t)? 11. What is probability densi

Calculate competitive equilibrium quantity, Assume a competitive industry w...

Assume a competitive industry with two hospitals. The hospitals compete in price (such that P = MC ), face the inverse demand curve =10 - Q , and have a constant marginal cost of

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