Q1. The following table shows the aggregate demand and short-run and long-run aggregate supply schedules for Japan.Price level758595105115125135Real GDP demanded(trillions of 2005 yen)600550500450400350300Real GDP supplied inthe short-run(trillions of 2005 yen)400450500550600650700Real GDP supplied inthe long-run(trillions of 2005 yen)1. What is the short-run equilibrium real GDP and price level?2. What is the long-run equilibrium or real GDP and price level?3. Does Japan have an inflationary gap or recessionary gap? How much?4. Explain how the economy will adjust to restore the long-run equilibrium?600600600600600600600

GDP or Gross Domestic Product is the sum of the production or expenditures that occur within the…

Q1. The following table shows the aggregate demand and short-run and long-run aggregate supply schedules for Japan. Real GDP supplied in the short-run Real GDP supplied in the long-run (trillions of 2005 yen) (trillions of 2005 yen) Price level 75 85 95 105 115 125 135 Real GDP demanded (trillions of 2005 yen) 600 550 500 450 400 350 300 400 450 500 550 600 650 700 1. What is the short-run equilibrium real GDP and price level? 2. What is the long-run equilibrium or real GDP and price level? 3. Does Japan have an inflationary gap or recessionary gap? How much? 4. Explain how the economy will adjust to restore the long-run equilibrium? 600 600 600 600 600 600 600

Q1. The following table shows the aggregate demand and short-run and long-run aggregate supply schedules for Japan. Real GDP supplied in the short-run Real GDP supplied in the long-run (trillions of 2005 yen) (trillions of 2005 yen) Price level 75 85 95 105 115 125 135 Real GDP demanded (trillions of 2005 yen) 600 550 500 450 400 350 300 400 450 500 550 600 650 700 1. What is the short-run equilibrium real GDP and price level? 2. What is the long-run equilibrium or real GDP and price level? 3. Does Japan have an inflationary gap or recessionary gap? How much? 4. Explain how the economy will adjust to restore the long-run equilibrium? 600 600 600 600 600 600 600

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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