Question M9.2 Unanswered •1 attempt left If the AD curve is given by GDP, = 73 – (5×P), and segment 2 of | 1 the AS curve is -21, + (,xP), what is 3. 3 the equilibrium price level? Remember to answer up to two decimal places. !!

Question M9.2 Unanswered •1 attempt left If the AD curve is given by GDP, = 73 – (5×P), and segment 2 of | 1 the AS curve is -21, + (,xP), what is 3. 3 the equilibrium price level? Remember to answer up to two decimal places. !!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The AD curve can be shifted by...
can you tell me if these answers are correct? they are true or false. 1)The output axis of the AD/AS curve is an approximation for the unemployment/employment level in the economy. -true 4) an increase in AD, given an upward sloping AS curve, will be inflationary, even beyond full employment output. -true 5) an increase in structural unemployment would be reflected as a shift of the vertical portion of the AS curve to the left- true
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Question 3 Explain fully why the AD curve has a negative slope. Use graphs to illustrate. Note You will need to read ahead to Chapter 6 to help you answer this question.
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Suppose that you have an AEF at a price level of p = $100 given by: AEF = 1,200+ 0.40Y Suppose also that for every $1 increase in the price level, desired consumtion decreases by $1. Given this, what is the slope of Aggregate Demand (AD) in the AD-AS model? Note: round your answers to three decimal places.