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- What are the factors other than price that can shift aggregate demand curve interms of investment and consumption? Also explain graphically.Given the following aggregate aggragate supply šchedule.() Price level Real GDp Deman ded Real GDP Supplied Short-RuN 70 80 90 100 110 450 400 350 300 350 400 450 500 250 350 4 the potential RGDP iŷ 450 units of us¢o 4) Draw and Show the short-run economic equilibrium and evaluate the situation by comparing with the long (hAs)explain this sifuation. geyate suppy (LAS) run aggregeafe plain ttis situationIn the above figure; when the economy is in a longr run equabrium, the price level will be 90 . 110. 120, 100
- Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q The government imposed a P300 tax on Producers Draw the graph for item 2 Determine the New eQWhen due to rise in price of a good, total expenditure on the good also rises, then demand is _________4. GDP is rising and price of crude oil in declining. P Demand :...... Supply: ...... Equilibrium Quantity_:……..... Equilibrium Price : ......
- Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on: aggregate demand, aggregate supply, price level, real GDP.(a) A decrease in government expenditure in infrastructure(b) A severe recession occurs in a country which has been a major importer of thenation’s exports.(c) The federal government increases business taxes with diagramMarket Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q The government imposed a P300 tax on Producers Draw the graph for items 2-3 Determine the New eQ What is the Pb?Assume that prices are flexible upward but not downward. Decide the effect onthe equilibrium price level and level of output of the following: Firms become less optimistic about future business decisions
- Let's assume that prices substantially increased over the past year. How do you expect this will affect people's buying behavior? Be sure to tie this back to economic concepts discussed in this course. Time Atten 33 M.Price level Figure 10-7 LRAS SRAS₂ SRASO J H SRAS ADO Real GDP Refer to Figure 10-7. Starting from long-run equilibrium at point F, at which of the following points would short-run equilibrium occur following a drought in the Midwestern states? O al O b. F OC.G O d.HQuestion 23 Which of the statements below is true? ORAfim eaming zero economic profits is not earning its opportunity cost OA The value of service provided by the miltary is included in GDP at market value Oc hcome resulting from unemployment benefts is included in GDP O& Other things equal in a market in equilbrum, any change in a determinant of demand will change the equilibrium quantity supplied
