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Suppose that the aggregate demand curve in a particular year is given by the algebraic
expression: Y = 3000 + 1000/P, where Y is the aggregate output and P is the price level as given by the GDP Deflator. Potential GDP (Y*) = 4000.
a. Plot aggregate demand and long run aggregate supply curves. Show aggregate demand schedule.
b. Suppose that the prices are flexible. Determine the price level and show it on the graph.
c. Now suppose that the following year, the aggregate demand curve is given by:
Y = 3000 + 1100/P. In what direction has the aggragate demand curve shifted? If the aggregate output remains at the potential level, determine the new price level. Calculate the rate of inflation between the two years.
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The textbook states, “Prejudice by itself did not create American slavery.” Examine the forces and events that led to slavery in North America, and the role that racial prejudice p
how can the factors of production be occupationally mobile
Process economics questions for assignment
Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy
Suppose a small open economy is characterised by the following equations/information: Y =6K 0 L 1-α K 0 = 30,000 L 0 = 10,000
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Question: (a) Formulate a VAR with 4 lags and also rewrite it in matrix form, mentioning the limitations of such models. (b) What is the rationale behind introducing lag-dep
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