What level of output does long-run equilibrium occur

Assignment Help Finance Basics

Reference no: EM131303797

1. In a graph illustrating the AD-AS model, where does short-run equilibrium occur, and where does long-run equilibrium occur? At what level of output does long-run equilibrium occur?

2. When the economy is in a short-run equilibrium, with output greater than potential GDP what will happen to the short-run aggregate supply curve? Briefly explain why this happens.

Reference no: EM131303797

Questions Cloud

Briefly explain the control of feeding by the hypothalamus : Briefly explain the control of feeding by the hypothalamus. Compare and contrast the functions of estrogen, testosterone and oxytocin in reproductive behavior.

Can the economy be in a short-run macroeconomic equilibrium : Can the economy be in a long-run macroeconomic equilibrium without being in a short-run macroeconomic equilibrium? Support your answer using an AD-AS graph.

What is monetary neutrality : Briefly explain whether the adjustment by the economy from short-run equilibrium to longrun equilibrium is more rapid in the new classical view or in the new Keynesian view.

Derive the weak form of a simply supported beam problem : Derive the weak form of a two-dimensional, steady-state heat transfer problem.- Derive the weak form of a simply supported beam problem.

What level of output does long-run equilibrium occur : When the economy is in a short-run equilibrium, with output greater than potential GDP what will happen to the short-run aggregate supply curve? Briefly explain why this happens.

Derive the weak form of a simply supported beam problem : When the potential energy of is given, derive the variational equation using the principle of minimum potential energy.- Derive the weak form of a simply supported beam problem.

How would they affect long-run aggregate supply : As the countries of Eastern Europe moved toward market-oriented economies, they removed most wage and price controls. How would the removal of these controls have affected aggregate demand and aggregate supply?

Explain what is meant by open position and open interest : Explain what is meant by open position/open interest. Why does the open position/open interest usually decline during the month preceding the delivery month? On a particular day, there are 2000 trades in a particular futures contract. Of the 2000 tra..

Does the short-run aggregate supply curve also have to shift : If the short-run aggregate supply curve shifts, does the long-run aggregate supply curve also have to shift? (Hint: Consider the factors that shift each curve and determine whether these factors also shift the other curve.)

User Account

All Pages