« previous next »

Author Question: Assume the equilibrium price level is 140 and the equilibrium real GDP is 15 trillion. What happens ... (Read 135 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?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

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

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc
Real Femur Real Femur
Are reality shows “real”? Does the media tell the “truth”? Are reality shows “real”? Does the media tell the “truth”?
The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles. The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles.
What is the value of the equilibrium constant, K, at 25°C for the reaction? What is the value of the equilibrium constant, K, at 25°C for the reaction?
An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ... An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ...
Video: Five phases of cardiac cycle & Atrial contraction

For a complete list of videos, visit our video library