(Intermediate Macroeconomics)
2.The aggregate supply function be ys=2000+P, and the aggregate demand function be yD=2400-P。Find the equilibrium point between supply and demand.
At equilibrium point, aggregate demand = aggregate supply.
yD = yS
2400-P = 2000+P
2400 - 2000 = P = P
400 = 2P
P = 400 / 2
P = 200 (Equilibrium Price)
Note: yD = yS = y (At equilibrium)
y = 2400 - P
y = 2400 - 200
y = 2200 (Equilibrium output)
(Intermediate Macroeconomics) 2.The aggregate supply function be ys=2000+P, and the aggregate demand function be yD=2400-P。Find the...
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