2. advanced analysis suppose that the equation for a par-

ticular short-run as curve is p = 20 + 0.5q, where p is the

price level and q is real output in dollar terms. what is if the

price level is 120? suppose that the q in your answer is the full-

employment level of output. by how much will q increase in

the short run if the price level unexpectedly rises from 120 to

132? by how much will q increase in the long run due to the

price level increase? l018.1

Q = 200

ΔQ = 24

Q will return to the full-employment level of output defined above, Q= 200. Thus, the long-run change is zero.

Step-by-step explanation:

If P = 120

⇒   120 = 20 + 0.5Q

⇒   Q = 100/0.5 = 200  (It is the full- employment level of output)

If the price level unexpectedly rises from 120 to  132, Q will increase

132 = 20 + 0.5Q

⇒   0.5Q = 112

⇒   Q = 224

ΔQ = 224 - 200 = 24

The change in Q is 24.

Q will not increase in the long run due to the  price level increase,

Q will return to the full-employment level of output defined above, Q= 200. Thus, the long-run change is zero.

step-by-step explanation:

mean or average is 40.6

a

step-by-step explanation: