Aggregate-demand curve slopes downward

Assignment Help Microeconomics
Reference no: EM13695894

For each of the following statements, indicate whether it is true or false.

a) The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.

b) The long-run aggregate-supply curve is vertical because the price level does not affect long-run aggregate supply.

c) If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal

d) Whenever the economy enters a recession, its long-run aggregate-supply curve shifts to the left.

Reference no: EM13695894

Questions Cloud

Monetary policy debates : Monetary Transmission Mechanism: According to the Keynesian school, show what happens, step by step, when the Federal Reserve sells US treasury bills to US banks. Quantity Theory of Money: According to the Monetarists and Rational Expectations, expla..
Traffic light is set to switch from red to green : A traffic light is set to switch from red to green according to a uniform distribution with a mean of 45 seconds. The difference between the smallest and largest number of seconds it takes the light to switch is 8 seconds.
Explain the meaning of monetary neutrality : Explain the meaning of monetary neutrality and illustrate graphically that there is monetary neutrality in the long run in the aggregate demand–aggregate supply model.
Profit-maximizing price and quantity chosen by monopolist : A monopolist faces a market demand curve given by P=12-2Q and has a total costs given by TC=6+Q^2. What is the profit-maximizing price and quantity chosen by the monopolist? What is the monopolist's profit?
Aggregate-demand curve slopes downward : The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods. The long-run aggregate-supply curve is vertical because the price level does not affect long-run aggregate supply. If firms adjuste..
What is the present worth of the total payments : What is the present worth of the total 20 payments, occurring at the end of every four months (i.e. the first payment is in four months), which is $400, $500, $600, increasing by a fixed sum. Interest is 12% nominal per year, compounded monthly.
Charge the interest rate on credit cards : Because credit card companies and banks must charge the same interest rate on credit cards to all borrowers, there is an adverse selection problem with credit cards.
Calculate the mean-median-range and standard deviation : Calculate the mean, median, range, and standard deviation of home price and size. For the assignment document you will submit, you can cut and paste the answers from the Analysis ToolPak, or you can place your results in the same Excel sheet
Discuss the factors that are affecting market for gasoline : The prices of petroleum products in the world market are constantly in the news and associated with them is the falling gasoline prices in the United States. In an essay, discuss the factors that are affecting the market for gasoline.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Marginal benefit

Marginal benefit is the:

  Does balanced budget multiplier still equal one describe

1 consider the following open-economyc 1000 08ydi 500g 400t 300ex 400im 005yda. compute the equilibrium output

  How market structure affects market performance

Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct

  Do the conditions differ from ulility-maximizing conditions

The owner-manager of Good Guys Enterprises obtains ulility from income (profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures.

  Discriminating pure monopolist must decrease price

The non discriminating pure monopolist must decrease price on all units of a product sold in order to sell more units.

  Calculate and plot using a spreadsheet

Calculate and Plot using a spreadsheet the series for Real GDP and calculate and Plot using a spreadsheet the yearly % changes in Nominal GDP (i.e. [GDPt+1-GDPt]/GDPt)

  Infer about the market share of each firm

Presume 2 firms are found on the real line [0,1]. Firm 1 is located at a=.15, and Firm 2 is located at 1-b, where b=.15. Suppose P1=P2=$10. Consumers face a distance cost of $2 per square unit of distance.

  Determine whether gdp will be underestimated or

determine whether gdp will be underestimated or overestimated in each of the followingthe quality of goods is

  Why would banks tend to lend more in booms

Why would banks tend to lend more in booms and less in downturns and what do these proposals mean for the RBA's policy of targeting inflation?

  Analyze what would happen to volume of services and

you are the administrator for a medical practice. assume all of your practices patients are covered by insurance.

  Describe the market structure of perfect competition

describe the market structure of perfect competition in terms of number of producers, control over price by firms in this market, type of product in terms of differentiation, barriers to entry into this market, and whether economic profit can be..

  What level of biomass generates this amount of harvest

What is the maximum amount of harvest that can be sustainably achieved in this system? What level of biomass generates this amount of harvest?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd