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Compute Aggregate Demand

Autor:   •  November 5, 2011  •  Study Guide  •  346 Words (2 Pages)  •  1,577 Views

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Chapter 8. Problem 1 (a through e)

Compute Aggregate Demand

Y= Real GDP

A'p = the amount of autonomous planned spending that is independent of the interest rate = 5000

Ms = the nominal money supply = 2,000

P = price level

W = nominal wage rate = 50

Yn = natural real GDP = 11,250

(a)Compute the amount of Aggregate Demand when the price level equals 2.0, 1.25, 1.0, .8, and .5

AD: Y = 1.25A'p + 2.5Ms/P

(b) Derive the equation for the short-run aggregate supply curve given the nominal wage rate = 50.

Chapter 8. Problem 1 (a through e)

Compute Aggregate Demand

Y= Real GDP

A'p = the amount of autonomous planned spending that is independent of the interest rate = 5000

Chapter 8. Problem 1 (a through e)

Compute Aggregate Demand

Y= Real GDP

A'p = the amount of autonomous planned spending that is independent of the interest rate = 5000

Ms = the nominal money supply = 2,000

P = price level

W = nominal wage rate = 50

Yn = natural real GDP = 11,250

(a)Compute the amount of Aggregate Demand when the price level equals 2.0, 1.25, 1.0, .8,

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