P
Physics 101
Guest
C = 3400 + 0.75(Y-T) - 12,000r
I = 1200 - 28,000r
G = 2000
NX = -200
T = 1200
I think the equation for Planed Aggregate Expenditure is 5500+0.75y-40,000r, if i calculated it right.
1) Calculate the level of short-run equilibrium output at each inflation rate
2) suppose that when the inflation rate is 4%, the Meiguo economy is at both a short-run and a long-run equilibrium. What is the level of potential output? Add the inflation adjustment and long-run aggregate supply curves to your diagram.
Rate of Inflation:
0.00
0.01
0.02
0.03
0.04
0.05
Real Interest Rate:
0.01
0.02
0.03
0.04
0.05
0.06
Calculate the level of short-run equilibrium output at each inflation rate and insert your answers into column A of the table above. Show your work for the case of inflation = 0% and for the case of inflation = 5%
I = 1200 - 28,000r
G = 2000
NX = -200
T = 1200
I think the equation for Planed Aggregate Expenditure is 5500+0.75y-40,000r, if i calculated it right.
1) Calculate the level of short-run equilibrium output at each inflation rate
2) suppose that when the inflation rate is 4%, the Meiguo economy is at both a short-run and a long-run equilibrium. What is the level of potential output? Add the inflation adjustment and long-run aggregate supply curves to your diagram.
Rate of Inflation:
0.00
0.01
0.02
0.03
0.04
0.05
Real Interest Rate:
0.01
0.02
0.03
0.04
0.05
0.06
Calculate the level of short-run equilibrium output at each inflation rate and insert your answers into column A of the table above. Show your work for the case of inflation = 0% and for the case of inflation = 5%