User Account

All Pages

Equilibrium price level and the equilibrium level

Assignment Help Macroeconomics
Reference no: EM131174335

Using the hypothetical economy data in the table below, calculate the aggregate demand and supply, as well as its price level.

Amount of Real GDP Demand, in Billions

Price Level (Price Index)

Amount of Real GDP Supplied, in Billions

$200

400

$600

$300

350

500

$400

300

400

$500

200

300

$600

150

200

Then address the following:

  • What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Use Excel to graph both the aggregate demand and aggregate supply curves. Can there be equilibrium level of output at below full employment?
  • At what price level will aggregate supply equal aggregate demand? At what price level will demand fall below aggregate supply? If given a price level of 200, will aggregate demand exceed supply?
  • If the aggregate demand schedule shifted by $200 billion to the right at every level, what would be the new equilibrium level of income?

Reference no: EM131174335

Questions Cloud

Determining the differences in the quality of products : What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would you rather live? Why?
Differences in the quality of those products : What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years would you rather live? Why?
The price of gasoline increased : Steve was spending all of his income by purchasing 12 units of gasoline and 36 unit of potato chips. The price of gasoline increased from $32 to $94. The price of potato chips remained the same at $23. How much would Steve's income have to rise so th..
Examine the organizational value chain : Examine the organizational value chain, including the components of the service delivery and support activities. Analyze the roles of and the relationships among organizational mission, vision, values, and strategic goals, and why they are called d..
Equilibrium price level and the equilibrium level : What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Use Excel to graph both the aggregate demand and aggregate supply curves. Can there be equilibrium level of output at below full employment?
Compute the volume flow rate of ethylene glycol : A 50.0 mm, sharp-edge orifice is placed in a DN 100 Schedule 80 steel pipe. Compute the volume flow rate of ethylene glycol at 25°C when a mercury manometer reads a 95-mm deflection.
Calculate gdp as spending on final goods and services : The small economy of Pizzania produces three goods (bread, cheese, and pizza), each produced by a separate company. The bread and cheese companies produce all the inputs they need to make bread and cheese, respectively. Calculate GDP as the value add..
Ordinary shares of tanzania tours limited : Legion Air Limited is a company incorporated in Kenya which operates throughout East, Central and Southern Africa. It is in the process of making an Initial Public Offering of its shares in the Nairobi Stock exchange.
Find the function representing the demand : A manufacture has been selling 1900 television sets a week at $540 each. A market survey indicates that for each $11 rebate offered to a buyer, the number of sets sold will increase by 110 per week. a) Find the function representing the demand p(x), ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Finding real gdp with the given data

Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 by using 2004 as the base year. By what percent did prices increase?

  Elucidate how might it use the six decision steps to guide

Suppose a soft-drink firm is grappling with the decision about whether or not to introduce to the market a new carbonated beverage with 25 percent real fruit juice. Elucidate how might it use the six decision steps to guide its course of action.

  Explain how might i have reallocated my spending

Explain how might I have reallocated my spending so as to maximize my total satisfaction from pizza and coffee.

  Tradeoff between unemployment md inflation

Suppose that the tradeoff between unemployment md inflation is determined by the Phillips curve: U = u^n - alpha (pi-Epi) where u denotes the unemployment rate, pi?

  Illustrate what do you think would be the effect

Illustrate what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability.

  Give the linear specification to estimate the demand

Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States.

  Population growth rates report

Need help to write a report including a list of top 10-countries based on population size including the average population growth rates and with the potential return of FDI of top nation on the list.

  What is the consumer price index

What is the Consumer Price Index (CPI)? How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source

  Why are nice homes usually built on expensive lots

someone drives through green hills you see large luxuriant homes spread across very large and beautiful pieces of real estate. Why are nice homes usually built on expensive lots rather than cheap ones

  Show basis for our construction of output demand function

Show the basis for our construction of the output DEMAND function. As an intermediate step explain the construction of the consumption function (as a function of output) and how this becomes a key component of the output supply function.

  Explain how the below game should be set-up

Explain how the below game should be set-up, played and solved a consumer decide.

  Effectiveness of federal reserve in stabilizing economy

Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy - Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd