--%>
Assignment Help - homework help

Equilibrium price level and level of real domestic output

Assume that aggregate demand and the short run supply for a hypothetical economy are as illustrated below:

 

608_Hypothetical economy.png

Employ these sets of data to graph the aggregate demand and supply curves. Determine the equilibrium price level and level of real domestic output in this supposed economy? Is the equilibrium real output also the absolute full capacity real output? Describe.

E

Expert

Verified

Observe the graph. Equilibrium price level will be 200. Equilibrium real output will be $300 billion. No, the full-capacity level of GDP= $400 billion, where the AS curve becomes vertical

 

1907_aggregate demand and supply curves.png

   Related Questions in Finance Basics

  • Q : Role of depreciation in estimating

    What kind of role does depreciation play in estimating incremental cash flows? Depreciation expense is a tax deductible expense and therefore affects cash flow through its effect on taxes. Depreciation expense which is incremental to a proposed

    		•
  • Q : Have mergers influenced competition

    Have mergers influenced competition?Federal Reserve data illustrates that measured on the local level, where competition takes place; markets have in fact experienced more banking competition, not less, in the past decade.

    		•
  • Q : Revision Order #2 Hello, You folks

    Hello, You folks recently completed an order for me. I'm very impressed and much thanks in advance. I'd like to submit more problems (8 attached) if you can have the same expert work on these please? Some of the #'s were slightly modified from my previous order, so should be easier than starting

    		•
  • Q : Relationship which MPC bear to the size

    Normal 0 false false

    		•
  • Q : Supply of automobile tires Normal 0

    Normal 0 false false

    		•
  • Q : Components of the M1 money supply

    Normal 0 false false

  • Q : None what are the disadvantages of

    what are the disadvantages of working capital

    		•
  • Q : Define Subcommittee Subcommittee : The

    Subcommittee: The smaller groupings into which the Senate or Assembly committees are frequently divided. For illustration, the fiscal committees which hear the Budget Bill are classified into subcommittees usually by departments or subject area (examp

    		•
  • 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 : Equilibrium GDP for this hypothetical

    Normal 0 false false