« previous next »

Author Question: Assume the equilibrium price level is 140 and the equilibrium real GDP is 15 trillion. What happens ... (Read 124 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
on: Jun 29, 2018
Assume the equilibrium price level is 140 and the equilibrium real GDP is 15 trillion. What happens if the current price level equals 125?
 
  What will be an ideal response?

Question 2

Nominal GDP, PY, is 7.5 trillion. The quantity of money is 3 trillion. The velocity of circulation is
 
  A) 22.5.
  B) 10.5.
  C) 2.5.
  D) 3.


jomama

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

The quantity of real GDP demanded is greater than the quantity of real GDP supplied. The price level rises to 140 because of the excess aggregate demand and when the price level reaches 140, macroeconomic equilibrium would be established.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
Reply #2 on: Jun 29, 2018
Thank you


jomama

  • Sr. Member
  • ****
  • Posts: 346
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Drive-on ramps are dangerous to use. The wheels on the ground level must be chocked (blocked) to ... Drive-on ramps are dangerous to use. The wheels on the ground level must be chocked (blocked) to ...
How to use the discriminant to determine the value of k in a quadratic with one real root How to use the discriminant to determine the value of k in a quadratic with one real root
Keeping your feelings to yourself may increase your stress level Keeping your feelings to yourself may increase your stress level
Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011 Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
One generation of random mating produces Hardy–Weinberg equilibrium One generation of random mating produces Hardy–Weinberg equilibrium
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library