plot the aggregate demand, Macroeconomics

Assignment Help:

The economy of Mainland has the following aggregate and aggregate supply schedules:

                              Real GDP Demanded                        Real GDP Supplied in the Short Run

                                                                                                   ($billion)

Price Level

     90                                  450                                                        350

   100                                  400                                                        400

   110                                  350                                                        450

   120                                  300                                                        500

   130                                  250                                                        550

   140                                  200                                                        550

(a)   Plot the aggregate demand and short run aggregate supply curves.

(b)   Determine Mainland's equilibrium or actual GDP and price level.

(c)   Mainland's long run GDP is $500 billion. Plot the long run aggregate supply curve on the same graph as Part (a) above.

(d)   Is Mainland at or above or below its natural rate of unemployment? Discuss.

(e)   Determine the physical limit of Mainland's economy.


Related Discussions:- plot the aggregate demand

Impact will high and variable rates of inflation, What impact will high and...

What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?

Explain the economic functions of money - a unit of account, Explain the Ec...

Explain the Economic functions of money - A unit of account In a monetary economy, all prices may be expressed in monetary units which everyone may relate to. Without money,

A spiral approach and a waterfall approach, What is the difference in chang...

What is the difference in changing the scope between a spiral approach and a waterfall approach? Ans) The scope of needs changes in Waterfall model is less than that in Spiral M

Diseconomies of scale, What are the four managerial factors that lead to di...

What are the four managerial factors that lead to diseconomies of scale

Explain the excise terms of tax, Explain the excise terms of tax. The e...

Explain the excise terms of tax. The excise terms of tax: a. Tax incidence b. Excess burden c. Deadweight loss d. Tax revenue

National income statistics, discuss four weaknesses of using national incom...

discuss four weaknesses of using national income statistics in comparing living standards between two countries

Differentiate comparative and absolute advantage, What is the difference be...

What is the difference between Comparative Advantage and Absolute Advantage? Difference between Comparative Advantage and Absolute Advantage: Comparative advantage: it is

Classical and non-classical model, what is the difference between classical...

what is the difference between classical and non-classical model

Estimate the value of wacc method, You can work on this assignment individu...

You can work on this assignment individually or in a group of up to 4 people.  If you choose to work as a group, your group should hand in one assignment and you will all receive t

Write Your Message!

Captcha
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!

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