Business, 27.03.2020 01:53 kritalewis

Big AD and AS general equilibrium system (2 points): Assume that the short-run equilibrium output and price combination Yeq, Peq is characterized by the point where the aggregate demand curve AD intersects the short-run aggregate supply curve SRAS. Aggregate demand AD is determined by IS-LM equilibrium. That is, aggregate demand is (Y, P) combinations consistent with market clearing in the goods market (IS) and in the money market (LM). The equilibrium equations for this economy are the following:Y¯ = F (K¯,L¯) LRAS: Natural level of output

Y = Y¯ +a(P−EP) a > 0 SRAS: Aggregate Supply

Y = C(Y −T) +I(r) +G IS: Goods market clearing

M P = L(r, Y) LM: Money market clearing
(a) Show the short-run effect of and the channel through which an increase in the money supply M ↑ affects the equilibrium output Y, real interest rate r, and price levels P (draw only the graphs which have any changes on them; i. e., if there is no change to planned expenditure, don't draw that graph).

(b) Show the short-run effect of and the channel through which an increase in government spending G ↑ affects the equilibrium output Y, real interest rate r, and price levels P

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:40

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Answers: 1

Answer

Business, 22.06.2019 04:10

An outside manufacturer has offered to produce 60,000 daks and ship them directly to andretti's customers. if andretti company accepts this offer, the facilities that it uses to produce daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. what is andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Answers: 3

Answer

Business, 22.06.2019 10:10

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Answers: 1

Answer

Business, 22.06.2019 11:20

Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?

Answers: 2

Answer

You know the right answer?

Big AD and AS general equilibrium system (2 points): Assume that the short-run equilibrium output an...

Questions