Suppose the aggregate demand curve is given by the equation: Y = 460 + 20M/P. The full-employment level of output is 800 and the current nominal money supply is 20. If the economy is in full-employment equilibrium, calculate the current price level. P=13.7 (Round to three decimal places.) With the price level fixed at 1.176, suppose the nominal money supply changes by 4 and is now 24. Now find the short-run equilibrium level of output Y = (Round to one decimal place.) To return to long-run equilibrium, the price level must adjust, shifting the short-run aggregate supply curve. The long-run equilibrium price level is: P= (Round to three decimal places.)

Suppose the aggregate demand curve is given by the equation: Y = 460 + 20M/P. The full-employment level of output is 800 and the current nominal money supply is 20. If the economy is in full-employment equilibrium, calculate the current price level. P=13.7 (Round to three decimal places.) With the price level fixed at 1.176, suppose the nominal money supply changes by 4 and is now 24. Now find the short-run equilibrium level of output Y = (Round to one decimal place.) To return to long-run equilibrium, the price level must adjust, shifting the short-run aggregate supply curve. The long-run equilibrium price level is: P= (Round to three decimal places.)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 14QP

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