Macroeconomics Assessment | Questions

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Course ID

MACROECONOMICS1
Table of Contents
Question 1....................................................................................................................................................................................................2
Question 2....................................................................................................................................................................................................5
Question 3..................................................................................................................................................................................................10
References..................................................................................................................................................................................................13

MACROECONOMICS2
Question 1
a)
Figure 1: Aggregate demand and Aggregate supply
b)
From the aggregate demand and aggregate supply diagram, the equilibrium price is obtained as $100 and equilibrium output is
obtained as 3000.

MACROECONOMICS3
c)
Figure 2: Impact of rightward shift of aggregate demand
If aggregate demand shifts to the right, long run equilibrium will shift from E to E1. The long run equilibrium output however
remains fixed at 3000.