Suppose that an economy has a Potential Real GDP (Y*) of $200. This economy also has the following AEF at a p = 100: AE = 200+ 0.5Y Note that for every $2 increase in p, C + NX decreases by $2, and so this AEF implies an AD of: AD: Y = 600-2p AS: Y = 0.5p AS is also given by: 5. What is Short-Run Equilibrium Real GDP (Y) and the Short-Run Equilibrium Price Level (p) in this economy?

Suppose that an economy has a Potential Real GDP (Y*) of $200. This economy also has the following AEF at a p = 100: AE = 200+ 0.5Y Note that for every $2 increase in p, C + NX decreases by $2, and so this AEF implies an AD of: AD: Y = 600-2p AS: Y = 0.5p AS is also given by: 5. What is Short-Run Equilibrium Real GDP (Y) and the Short-Run Equilibrium Price Level (p) in this economy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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