Real output and potential output

Related BrainMass Solutions

• unemployment rate

  Next, consider the following three scenarios, and USE APPROPRIATE DIAGRAMS to show the likely effects of an activist policy in both the short and long run. A. The economy is above potential output. B. The economy is at potential output. C.

• Inflationary vs. Recessionary Gaps

  Real GDP equals $100 billion, potential output equals $160 billion, and the marginal propensity to consume is 0.75. b. Real GDP equals $250 billion, potential output equals $200 billion, and the marginal propensity to consume is 0.5. c.

• The long-run aggregate supply (LRAS) curve

  Why is the long-run aggregate supply curve located at his level of output rather than below or above the potential output level?

• Long and Short Run Aggregate Supply Curves

  Why output can be expanded production in the short run is that firms can use labor and capital more intensively and the economy is producing below potential output (full capacity is not reached).

• expenditures and reduced taxes

  The potential real output level (where unemployment rate = 0) has not been reached. When there is an expansionary fiscal policy, the increased aggregate demand will encourage the aggregate production and increase the real output.

• Aggregate Supply and Demand, and Unemployment

  Self-correction is the ability of the economy to eliminate any imbalances between actual and potential output.

• Problems on GDP Calculation

  The actual real GDP is what most people call the real GDP, and the natural real GDP is what most people call the potential GDP.

• government expenditure

  Output will rise beyond the potential GDP level. Note that potential GDP is the output at full employment. When real GDP exceeds potential GDP unemployment rate falls below the natural rate of unemployment, and hence, employment rate goes up.

• Analysing negative feedback for different Opamp types

  /70.7 mA = 185 nA Output power is by power law, given by P(OUT) = V(OUT)*I(OUT) = 13.09 x 185 nW P(OUT) = 2.42 uW It is assumed that question 2 and 3 want the real voltage gain and not the real output voltage.