--%>
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 : Explain Category Transfer Category

    Category Transfer: It is a permitted transfer between categories or functions within the similar schedule of an appropriation. These transfers are currently authorized by Control Section 26.00 of the Budget Act (and proceeding to 1996-97, by Section 6

    		•
  • Q : Describe the benefits of paying late

    Describe the benefits of "paying late" (but not too late) and how do companies try to do this? Since money has time value, the later cash is paid, but not too late, the better. Companies employ remote disbursement banks to facilitate holding at

    		•
  • Q : What are Summary Schedules Summary

    Summary Schedules: Different schedules in the Governor’s Budget Summary that summarize state revenues, expenditures and other fiscal and personnel data for the past, present, and budget years.

    		•
  • Q : Define the term State Fiscal Year

    Define the term State Fiscal Year: This is the period beginning from July 1 and continuing through the subsequent June 30.

    		•
  • Q : Explain Administratively Established

    Administratively Established Positions: The positions authorized by the Department of Finance throughout a fiscal year that were not comprised in the Budget and are essential for workload or administrative reasons. These positions fin

    		•
  • Q : Define the term Baseline Adjustment or

    Define the term Baseline Adjustment or  Baseline Budget: Baseline Adjustment: Also termed to as Workload Budget Adjustment.

    Q : How long do business cycles remain

    Normal 0 false false

  • Q : Supply of automobile tires Normal 0

    Normal 0 false false

    		•
  • Q : Four major phases of the business cycle

    Normal 0 false false

    		•
  • Q : Types of legal barriers to market entry

    Types of legal barriers to market entry exist: Kinds of legal barriers which make that difficult for the newer drug in the generic form towards entering market have been lack of the rigorous assessment about the patentability needs; thirty mouth stay

    		•