題組內容

3. Consider an economy with the following aggregate demand and aggregate supply functions: Aggregate Demand function:

6316b52026488.jpgwhere Y represents the output, 6316b546af470.jpg is the potential output, Pe is the price level, Pe is the expected price level, M is the nominal money supply. Furthermore, assume that M = 400 and 6316b546af470.jpg  = 200.

(A) (6 points) Compute the equilibrium price and the equilibrium output, given that the expected price level is exactly equal to the actual price level.