Given the following information: - The economy is in the long-run equilibrium. - The Fundamental Equation of Monetarism is true. - The income velocity of money is constant and the money supply is fixed: v=0.15 M=5600 - The production function is Y=F (L,K) = 8×√L×√K - The endowment of resources is given by the input combination (L,K) = (49,25) A. Find the equation of the aggregate demand curve. B. What is the equation of the long-run aggregate supply curve? C. What is the equilibrium price level when the unemployment rate is at NAIRU?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Given the following information:

- The economy is in the long-run equilibrium.

- The Fundamental Equation of Monetarism is true.

- The income velocity of money is constant and the money supply is fixed:

v=0.15 M=5600

- The production function is

Y=F (L,K) = 8×√L×√K

- The endowment of resources is given by the input combination

(L,K) = (49,25)

A. Find the equation of the aggregate demand curve.

B. What is the equation of the long-run aggregate supply curve?

C. What is the equilibrium price level when the unemployment rate is at NAIRU?

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