Question: ECON 1202 - Assignment # 1 1) Demonstrate graphically and explain a recessionary gap. Describe two solutions for closing the gap. The diagram of

ECON 1202 - Assignment # 1 1) Demonstrate graphically and explain a recessionary gap. Describe two solutions for closing the gap. The diagram of the gap: P1 Price Level LAS AS AD Y YFE Real Output The explanation of the gap diagram: The diagram above shows a recessionary gap of (YFE-Y1). The economy is in equilibrium at point A with price level P1 and real output level Y1. A recessionary gap exists when equilibrium output is below potential output as it is in the diagram. (b)_ 2) The following figure depicts the economy of Atlas, which is presently in equilibrium. Price level 10 9 8 3 7 6 LAS AS 2 1 AD 0 0 100 200 300 400 500 600 700 Real GDP a) What is the size of its recessionary gap? b) What is the size of its gap as a percentage of its actual GDP?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Joe Truman, a retired army officer, opened Truman?s Catering Service. As his accountant, analyze the transactions listed next and present them in proper form. 1. The analysis of the transactions by...

You are asked to help a friend with the statistical analysis of their Honor's thesis. They conducted a simple two group experiment with different subjects randomly assigned to each of the two groups....

Question: What as the average weekly safety inventory level of refined sugar from the beginning January 2022 to the end of July 2022? A. 512,465.9691 metric tons per week B. 316,002.1474 metric tons...

Portray in words what transforms you would have to make to your execution to some degree (a) to accomplish this and remark on the benefits and detriments of this thought.You are approached to compose...

Can you assist llege x Grades - ECON1110:Macroecono x Question 36 - Pr ME 21 22 12 - C X +...

need help with question 1,2,3,4 please M Georgette Adu A Spring 2024 March 19 th 202 Atonnette Adel Aquekum Principles of Macroeconomics HOMEWORK ASSIGNMENT II Spring 2024 Principles of...

4 Files 3:17 PM Fri May 13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: POLICY BASICS Use the space below to take notes during class. The Federal Reserve: Monetary Policy:...

4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: FISCAL POLICY Use the space below to take notes during class. Disposable Income: How does a change in...

Everything else constant, the international trade effect indicates that aggregate expenditures in the domestic economy fall when: A) domestic prices fall relative to foreign prices. B) domestic...

RHCJLIUI I If I. a) b) Contrast the economic views of Keynes and Hayek. In the first half of the course it was mentioned that when economics and common sense conflict, common sense was wrong. There...

B 2.1 Reading - 4SP2021 Appl Mc X VitalSource Bookshelf: Macroe( X B 2.4 Assignment: Study Plan Prc X G 2.4 Macroecon Course Hero X + C bookshelf....

The uniform 4-kg cylinder A, of radius r = 150 mm, has an angular velocity 0 = 50 rad/s when it is brought into contact with an identical cylinder B which is at rest. The coefficient of kinetic...

Use the information below to answer the following questions: Original Scenario 1 Scenario 2 Sales 3,726,000 4,560,624 4,560,624 - Variable Costs 801,900 1,071,498.78 1,129,331.81 = Contribution...

P7.23 Repeat Problem P7.22 for the loop transfer func tion L s ( ) = G s c ( ) G s ( ) of Problem P7.1(c). Data from in P7.22 Determine the root sensitivity of the dominant roots of Problem P7.1 (a)...

What advantages does a SAX parser have over a DOM parser?

Go to a tax blog and post a comment concerning one of the following items relative to individuals who are subject to the AMT. a. Interest deductions on vacation homes. b. Personal and dependency...

Use Stokes Theorem to evaluate S curl F dS. F(x, y, z) = x 2 sin z i + y 2 j + xy k, S is the part of the paraboloid z = 1 x 2 y 2 that lies above the xy-plane, oriented upward.

Marissa intends to make contributions to a Tax Free Savings Account (TFSA) such that the account will accumulate to $150,000 after 20 years. What end-of-quarter contributions must be made if the TFSA...

To provide a starting point for gauging a companys relative valuation, analysts often look at a companys price-to-earnings (P/E) ratio. Returning to the COMPANY OVERVIEW page, you can see XOMs...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

41. Show in Example 6.22 that the limiting probabilities satisfy Eqs. (6.33), (6.34), and (6.35).

39. Suppose in Exercise 38 that an entering customer is served by the server who has been idle the shortest amount of time. (a) Define states so as to analyze this model as a continuous-time Markov...

42. In Example 6.22 explain why we would have known before analyzing Example 6.22 that the limiting probability there are j customers with server i is . (What we would not have known was that the...