Assume That the Long-Run Aggregate Supply Curve Is Vertical at Y

question 1

Short Answer

Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2(M/P) and M = 1,500.
A) If the economy is initially in long-run equilibrium, what are the values of P and Y?
B) If M increases to 2,000, what are the new short-run values of P and Y?
C) Once the economy adjusts to long-run equilibrium at M = 2,000, what are P and Y?

• A) If the economy is initially in long-run equilibrium, what are the values of P and Y?
• B) If M increases to 2,000, what are the new short-run values of P and Y?
• C) Once the economy adjusts to long-run equilibrium at M = 2,000, what are P and Y?

Differentiate between situational and dispositional attributions.

Recognize the distinction between prejudice and discrimination and their implications.

Identify and explain the concepts of in-group and out-group in social identity.

Comprehend the role of stereotypes in shaping social perception and behavior.

---

Definitions:

Capital Goods

Are tangible assets such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for every possible quantity of another good produced, given the available resources and technology.

Consumer Goods

Products and services that are purchased for personal use or consumption by the general public.

Capital Goods

Goods that are used in producing other goods and services rather than being bought by consumers.