Suppose economy is producing the full employment level of output $22 trillion and unemployment rate is at its natural rate of 4.5%. now assume that the central bank unexpectedly increases money supply by 10%.a) illustrate the short-run effects of the monetary policy by using aggregate demand-aggregate supply model. be sure to indicate the direction of change in real gdp, the price level and the unemployment rate. b) illustrate the long-run effects of the monetary policy by using aggregate demand-aggregate supply model. again, be sure to indicate the direction of change in real gdp, the price level and the unemployment rate. c) now assume that this monetary expansion was completely expected. illustrate both short-run and long-run effects on the economy by using aggregate demand-aggregate supply model. again, be sure to indicate the direction of change in real gdp, the price level and the unemployment rate.

Suppose the number of firms you compete with has recently increased. you estimated that as a result of the increased competition, the demand elasticity has increased from –2 to –3 (i.e., you face more elastic demand). you are currently charging $10 for your product. what is the price that you should charge if demand elasticity is -3?

The following accounts appeared in recent financial statements of delta air lines. identify each account as either a balance sheet account or an income statement account. for each balance sheet account, identify it as an asset, a liability, or stockholders' equity. for each income statement account, identify it as a revenue or an expense. item financial statement type of account accounts payable balance sheet advanced payments for equipment balance sheet air traffic liability balance sheet aircraft fuel (expense) income statement aircraft maintenance (expense) income statement aircraft rent (expense) income statement cargo revenue income statement cash balance sheet contract carrier arrangements (expense) income statement flight equipment balance sheet frequent flyer (obligations) balance sheet fuel inventory balance sheet landing fees (expense) income statement parts and supplies inventories balance sheet passenger commissions (expense) income statement passenger revenue income statement prepaid expenses income statement taxes payable balance sheet

The impact fiscal multiplier is a. usually estimated to have an average value of 2. b. usually estimated to have an average value of 0. c. the actual immediate multiplier effect of a fiscal policy action after taking into consideration direct fiscal offsets and other short-term crowding out of private spending. d. the multiplier effect of a fiscal policy action that applies to a long-run period after all influences on equilibrium real gdp have been taken into account.