1. The economy of Whoville is described by the following equations: AD: Y = 4000+2(M/P) SRAS: Y=Y +100(P-P²) Okun's Law: (Y-Y)/Ỹ = −2(u−u”) In this economy full-employment output Y equals 6000, money supply M equals 4000, and the natural rate of unemployment u" equals 0.05. Suppose that Whoville has been in this long run equilibrium for a while and is expected to stay in the long run equilibrium with no changes to fiscal or monetary policy. Please calculate the expected price level Pe for Whoville in the long run. A totally unexpected increase in money supply occurs, raising it from 4000 to 4488. Given this unexpected increase, please calculate the short-run equilibrium values of the price level, expected price level, output, and unemployment rate (leave your answer for u as a fraction). Using what you calculated, report the values of cyclical unemployment and unanticipated inflation (leave this in fraction too). What is the slope of the expectations-augmented Phillips curve in Whoville? What is the tradeoff between unemployment and inflation for the Whoville economy?

Assume that the equilibrium level of Y (or real GDP) is $10 trillion, the actual unemployment rate is 4.0%, and the natural unemployment rate is 5%. Okun's Law tells us that we should increase Y by 1.6% O increase Y by 2.0% decrease Y by 1.6% decrease Y by 2.0%

The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. a. The size of its recessionary gap is $  .b. The size of this gap as a percentage of its actual GDP is  %.c. If the natural rate of unemployment is 1%, use Okun’s law to calculate the amount of actual unemployment in Altrua.   The actual rate of unemployment is  %. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

Suppose that inflation increases from Year #1 to Year#2 without growth. Which of the following graphs correctly shows this situation? (Note: Year #2 positions are shown with dark blue lines.) Price Level Price Level a Ps 0 1 LRAS QN Q₁ LRAS ON 0₁ A) Graph A B) Graph B C) Graph C D) Graph D SRAS SRAS UI SRAS, AD, (M-$800 billion; V - 3) MTD AD₂ (M-$820 billion; V = 3) SRAS, (c) MVT Real GDP AD₂ (M-$800 billion; V - 4) AD, (M-$800 billion; V - 3) Real GDP Price Level Price Level Qa 0 ON P₁ O -- 1 1 0₁ ON 2 -=-= LRAS 1 T LRAS 6 ở SRAS, SRAS₂ AD, (M-$800 billion; V-3) (b) AD₂ (M-$780 billion; V- 3) SRAS1 MIV SRAS2 (d) MV↓ Real GDP AD, (M-$800 billion; V-3) AD₂ (M-$900 billion; V=2) Real GDP

PRICE LEVEL (CPI) The following graph represents the short-run aggregate supply curve (SRAS) based on an expected price level of 150. The economy's full- employment output level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 150, but the actual price level turns out to be 100. Show the short-run effect of the unexpectedly low price level by dragging the curve or moving the point to the appropriate position. 300 SRAS[150] 250 SRAS[150] 200 150 100 50 0 1 0 3 6 9 12 15 18 REAL GDP (Trillions of dollars) ? Interpret the change you drew on the previous graph by filling in the blanks in the following paragraph: The lower-than-expected price level causes firms to earn profit than they expected on each unit of output they produce, and, therefore, they than workers and firms their production level. At the same time, the real value of wages and other resource prices is…

4. An increase in productivity will likely cause downward, and have an ambiguous effect on the _(AS / AD) curve to shift _(AS / AD) curve. 5. Suppose an economy is characterized by the equations below: Price setting: P= (1+ m \w /A) Wage setting: W = A°P*(1– u) Write down an expression for the equilibrium unemployment rate if P* = P but A does not necessarily equal A. Now suppose that expectations of both prices and productivity are accurate. If the markup (m) is equal to 5%, the natural rate of unemployment is

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I need help with the following macro questions! Thank you in advance. They relate to the graph attached below. Using the quantities given in the horizontal axis, give expressions for the following: 1) involuntary unemployment after the labor demand decreases if wages are rigid at W1 2) voluntary unemployment after the labor demand decreases if wages are rigid at W1

Price Level AD2 LRAS AD, W AD, PA SRAS M P3 P2 Z. P, Po Qo Q, Q2 Q3 Real Domestic Output, GDP

Consider the market for loanable funds. Suppose the demand for loans is given by i= 40-Q+π, and the supply of loans is given by i= -30+Q+π, where π represents inflation. In the case of π=5, what is the equilbrium quantity of loans and what is the corresponsing interest rate?      Q*=70, i*=45     Q*=10, i*=35     Q*=35, i*=10     Q*=45, i*=70