Question on hypothetical economy
Consider that aggregate demand and the short run supply for any hypothetical economy are as : Why will a price level of 150 not be an equilibrium price level in this economy? Why not 250?
Consider that aggregate demand and the short run supply for any hypothetical economy are as :
Why will a price level of 150 not be an equilibrium price level in this economy? Why not 250?
Expert
At price level of 150, real GDP supplied maximum is $200 billion, less than the real GDP demanded of $400 billion. The shortage of real output will drive the price level up. At price level of 250, real GDP supplied is $400 billion that is more than the real GDP demanded of $200 billion. The surplus of real output will drive down the price level. Equilibrium takes place at the price level at which AS & AD intersect.
Normal 0 false false
Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items
Cost-of-Living Adjustments (COLA): Increases offered in state-funded programs which comprise periodic adjustments predetermined in state law (statutory, like K-12 education apportionments), or established at optional levels (that is discretionary) by
Provision: The language in a bill or act which imposes necessities or constraints on actions or expenditures of the state. The provisions are frequently employed to constrain the expenditure of appropriations however it might also be employed to give
Indirect Costs: The costs which by their nature can’t be readily related with a particular organization unit or program. Similar to general administrative expenses, indirect costs are dispersed to the organizational unit(s) or programs that bene
18,76,764
1930488 Asked
3,689
Active Tutors
1459671
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!
