Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. The aggregate demand curve is Y = 3(M/P) and M = 1,000.a.If the economy is initially in long-run equilibrium, what are the values of P and Y?Illustrate your answers in a diagram.b. Now suppose a supply shock moves the short-run aggregate supply curve to P = 1.5. What are the new short-run P and Y? I llustrate your answers in a diagram?c. If the aggregate demand curve and long-run aggregate supply curve are unchanged, what are the long-run equilibrium P and Y after the supply shock? I llustrate your answers in a diagram?d. Suppose that after the supply shock the central bank wanted to hold output at its long-run level. What level of M would be required? If this level of M were maintained, what would be long-run equilibrium P and Y? I llustrate your answers in a diagram?The post Equilibrium 19931767 appeared first on nursingwritinghelp.org. “Are you looking for this answer? We can Help click Order Now” “Looking for a Similar Assignment? writersThe post Equilibrium 19931767 first appeared on nursing writers. “Are you looking for this answer? We can Help click Order Now”
Nursing Essay Help
Our writing services are extensive and unique that improve your grades. We have a team of best writers who cope up with our clients to deliver them customized tasks at affordable price range.
Talk to Us
Talk to us through our live chat or email