--%>
Assignment Help - homework help

Employ the aggregate demand-aggregate supply model

Between the year of 1990 and 2005 the Canadian price level rose by approximate 36 percent whereas its real output raised by approximately 52 %. Employ the aggregate demand-aggregate supply model to show these outcomes graphically.

 

 

E

Expert

Verified

In the graph illustrated, both AD & AS expanded over the 1990-2005 period. Since aggregate supply rose as well as aggregate demand, the new equilibrium output rose at faster pace than did the price level. P2 is 36% above P1 and GDP2 is 52% higher than GDP1. 

1507_aggregate demand-aggregate supply model.png

   Related Questions in Finance Basics

  • Q : Legal factors to restrict a corporation

    Are there any legal factors which could restrict a corporation in its attempt to pay cash dividends to common stockholders? Describe. A firm may be legally limited as to the dividends it can pay through existing bond indentures or loan agreemen

    		•
  • Q : Describe the status of cyclically

    Assume the full-employment, non-inflationary level of real output is GDP3 (not GDP2). If the economy is operating at GDP2 instead of GDP3, describe the status of its cyclically adjusted budget? The status of its present fiscal polic

    		•
  • Q : Equilibrium GDP for the open economy

    Normal 0 false false

  • Q : Effect of raising funds on rapidly

    Companies along with rapidly growing levels of sales do not require worrying about raising funds from outside the firm. Do you agree or disagree along with this statement? Describe. Disagree. Quickly growing firms require more assets to accom

    		•
  • Q : Explain State-Mandated Local Program

    State-Mandated Local Program: The state compensations to local governments for the cost of activities needed by legislative and executive acts. This reimbursement necessity was established, Statutes of 1972 (SB 90) and further approved by the adoption

    		•
  • Q : Define Legislative Counsel Digest

    Legislative Counsel Digest: The summary of what a legislative measure does contrasting the existing law and the proposed change. This summary emerges on the first page of the bill.

    		•
  • Q : Define Price Increase Price Increase :

    Price Increase: Budget adjustment to reflect the inflation factors for particular operating expenses constant with the budget instructions from the Department of Finance.

    		•
  • Q : Multiplier effect Normal 0 false false

    Normal 0 false false

    		•
  • Q : Define Sponsor Sponsor : It is an

    Sponsor: It is an individual, group, or organization which initiates or brings to a Legislator's attention a proposed law modification.

    		•
  • Q : What is Cash Flow Statement What is

    What is Cash Flow Statement: It is a statement of cash receipts and disbursements for a particular time period.

    		•