ADVANCED ANALYSIS Suppose that the equation for a particular short-run AS curve is P= 40 + 0.5Q, where Pis the price level and Q is real output in dollar terms. Instructions: Enter your answers as a whole number. a. What is Q if the price level is 130? b. Suppose that the Q in your answer is the full-employment level of output. By how much will Qincrease in the short run if the price level unexpectedly rises from 130 to 142? By how much will Q increase in the long run due to the price-level increase?

ADVANCED ANALYSIS Suppose that the equation for a particular short-run AS curve is P= 40 + 0.5Q, where Pis the price level and Q is real output in dollar terms. Instructions: Enter your answers as a whole number. a. What is Q if the price level is 130? b. Suppose that the Q in your answer is the full-employment level of output. By how much will Qincrease in the short run if the price level unexpectedly rises from 130 to 142? By how much will Q increase in the long run due to the price-level increase?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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