Consider the following extended classical economy (in which the misperceptions theory holds): AD Y= 300 + 10 SRAS Y=Y +P-p° Full-employment output Y = 800 Natural unemployment rate u=0.04 a. Suppose that the money supply M = 1000 and the expected price level p° = 20. %3! %3D The short-run equilibrium value of output Y is 800 , and the short-run equilibrium value of the price level P is 20 (Type integers or decimals rounded to two decimal places as needed.) The long-run equilibrium value of output Y is, and the long-run equilibrium value of the price level P is (Type integers or decimals rounded to two decimal places as needed.)

Consider the following extended classical economy (in which the misperceptions theory holds): AD Y= 300 + 10 SRAS Y=Y +P-p° Full-employment output Y = 800 Natural unemployment rate u=0.04 a. Suppose that the money supply M = 1000 and the expected price level p° = 20. %3! %3D The short-run equilibrium value of output Y is 800 , and the short-run equilibrium value of the price level P is 20 (Type integers or decimals rounded to two decimal places as needed.) The long-run equilibrium value of output Y is, and the long-run equilibrium value of the price level P is (Type integers or decimals rounded to two decimal places as needed.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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