An Aggregate Expenditure model with AS = 2p + 20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y), - %3D | = 10, G = 10 is initially in long-run equilibrium Y* = YO. Net exports NXO = 50 – P – .1Y increase to NX1 = 70 – P - .1Y. After this shock the long run the price level will be equal to
An Aggregate Expenditure model with AS = 2p + 20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y), - %3D | = 10, G = 10 is initially in long-run equilibrium Y* = YO. Net exports NXO = 50 – P – .1Y increase to NX1 = 70 – P - .1Y. After this shock the long run the price level will be equal to
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 1P
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![An Aggregate Expenditure model with AS = 2p +
20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y),
| = 10, G = 10 is initially in long-run equilibrium Y*
= YO. Net exports NXO = 50 – P – .1Y increase to
NX1 = 70 – P - 1Y. After this shock the long run
the price level will be equal to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34278b97-6d20-4200-8efe-36b1a99d191e%2F28d64b16-96b4-4ea8-b52a-67ce7deb6e8f%2Fsbpf4aa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An Aggregate Expenditure model with AS = 2p +
20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y),
| = 10, G = 10 is initially in long-run equilibrium Y*
= YO. Net exports NXO = 50 – P – .1Y increase to
NX1 = 70 – P - 1Y. After this shock the long run
the price level will be equal to
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