An Aggregate Expenditure model with AS = 2p + 20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y), - %3D | = 10, G = 10 is initially in long-run equilibrium Y* = YO. Net exports NXO = 50 – P – .1Y increase to NX1 = 70 – P - .1Y. After this shock the long run the price level will be equal to

An Aggregate Expenditure model with AS = 2p + 20 – 2W and WO = 10, C = 26 + 0.8(Y – 20 – .25Y), - %3D | = 10, G = 10 is initially in long-run equilibrium Y* = YO. Net exports NXO = 50 – P – .1Y increase to NX1 = 70 – P - .1Y. After this shock the long run the price level will be equal to

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1P

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