« previous next »

Author Question: Assume the equilibrium price level is 140 and the equilibrium real GDP is 15 trillion. What happens ... (Read 145 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?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

How the study of genomes and proteomes can provide us with connections to different biological level How the study of genomes and proteomes can provide us with connections to different biological level
Comparison of reactions at equilibrium and steady state Comparison of reactions at equilibrium and steady state
People using walkers typically have a high level of mobility impairment. People using walkers typically have a high level of mobility impairment.
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
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene
Video: Egg and Sperm Formations in Animals Animation

For a complete list of videos, visit our video library