Price LevelQuestion 38The graph below shows the AD-AS diagram for Norway.Suppose that the economy is initially in long-run equilibrium with the price level of 900 (Red AD and SRAScurves).Now suppose that consumers become optimistic.1200*1100-1000900800*700-600-500400-300-200100>100 200 300 400 500 600 700 800 900 1000 1100 120Real GDPQ1. As a result of this event what is the new short-run price level?2. As a result of this event, what is the new short-run GDP?3. As a result of this event, what is the new long-run price level?4. As a result of this event, what is the new long-run GDP?Submit Question

Long run equilibrium is the level where long run aggregate supply and short run demand and supply…

1. As a result of this event what is the new short-run price level? 2. As a result of this event, what is the new short-run GDP? 3. As a result of this event, what is the new long-run price level? . As a result of this event, what is the new long-run GDP?

1. As a result of this event what is the new short-run price level? 2. As a result of this event, what is the new short-run GDP? 3. As a result of this event, what is the new long-run price level? . As a result of this event, what is the new long-run GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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