Given the following information about the economy of the land of midnight sun:
The AD curve is Yd = 600 - 50P.
The SAS curve is Ys = 50P.
The LAS curve is Ys = 300.
What is the equilibrium real GDP and the price level? How will you describe this macroeconomic equilibrium?
Technological advances increase aggregate supply by 30 units. What is the change in real GDP and the price level ? How will you describe this macroeconomic equilibrium?
Beginning with the original aggregate supply and aggregate demand curves, what is the change in the real GDP and the price level if aggregate demand increases by 60 units? How would you describe this macroeconomic equilibrium?
An increase in wages lowers the short-run aggregate supply curve by 10 units. What is the change in real GDP and the price level? How would you describe this macroeconomic equilibrium?