Aggregate demand or short-run aggregate supply

Assignment Help Macroeconomics
Reference no: EM131096086

Answer one of the following questions:

A. While having a haircut, the hairdresser heard you were studying macroeconomics and said "The reason the aggregate demand curve slopes downward is that when the price level is higher, people cannot afford to buy as many goods and services". Do you agree or disagree with the hairdresser's statement? Explain.

B. List three variables that would cause a decrease in real GDP--indicate whether changes in each variable increase or decrease aggregate demand or short-run aggregate supply. Next, state three variables that would cause an increase in the price level--indicate whether changes in the variable increase or decrease aggregate demand or short-run aggregate supply.

Reference no: EM131096086

Questions Cloud

Career options for a paralegal : Reflect back on your first four weeks and all the information you have learned. Also take into consideration the information provided in the article. Please answer the following questions:
Examine how the described problem might happen : When you get to the end of the scenarios, one scenario will have the word "Transcultural" on the top right corner. Click on "Transcultural." Read the scenario and answer the four questions that are provided.
Patients taking antihypertensive agent : Multiple drugs are often used in treating hypertension. Suppose 10% of patients taking antihypertensive agent A experience gastrointestinal (GI) side effects, whereas 20% of patients taking antihypertensive agent B experience such side effects.
Benefit from price discrimination : Buyers also benefit from price discrimination. Those with lower reservation prices would be excluded from buying the good if the rebate were not offered. In this case, some buyers whose reservation price is at least as high as the discounted price..
Aggregate demand or short-run aggregate supply : Next, state three variables that would cause an increase in the price level--indicate whether changes in the variable increase or decrease aggregate demand or short-run aggregate supply.
Power and violence are opposites : "To sum up: politically speaking, it is insufficient to say that power and violence are not the same. Power and violence are opposites; where the one rules absolutely, the other is absent. Violence appears where power is in jeopardy, but left to its ..
Spss-graphing-basic descriptive statistics : A word document containing answers to the questions below only including appropriately labeled and formatted supporting tables and graphs ~ 120 points
Extensive damage to both public and private oyster grounds : Oil spills in the Gulf of Mexico have been known to cause extensive damage to both public and private oyster grounds along the Louisiana and Mississippi shores. One way to protect shellfish along the shoreline is to release large volumes of fresh ..
Demand or supply for hairdressers when imposed : The market equilibrium wage is currently $12 per hour for hairdressers. Legislation imposed a minimum wage of $11.50 per hour. If there are no changes to either the demand or supply for hairdressers when imposed, the number of hairdressers will be?

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Increase profits by raising revenue

Firms cam increase profits by increasing revenue and/or reducing costs. Provide three example (cite all reference) of firms that are trying to increase profits by raising revenue and three that are trying to do so by reducing costs.

  Supply and demand conceptsyou have been hired by a new firm

supply and demand conceptsyou have been hired by a new firm selling electronic dog feeders. your client has asked you

  Does farming in the united states have the characteristics

Does farming in the United States have the characteristics of perfect competition? How does perfect competition in the farming industry help farmers and consumers? or Hurt farmers and consumers?

  What is the actual real interest rate on the loan

Would you have been less likely or extra likely to borrow the money if they had known the true inflation rate? Who was hurt by the fact that the actual inflation was not equal to the expected inflation rate, the lender or the borrower?

  1 why have economic analyses of clinical and administrative

1. why have economic analyses of clinical and administrative innovations become more important?2. a clinic finds that

  Elucidate when did we have the last major tax increase

Elucidate when did we have the last major tax increase. How did the economy react to that over the next few years.

  Determine best targets for the fed

The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms.

  Provide separate arguments to support your claims

Provide separate arguments to support your claims as to their slope, curvature, and the direction of increasing utility.

  Obesity in the u.s.

Macroeconomic studies would be more interested in the trend in overweight and obesity in the U.S. and other OECD countries rather than the percent of public spending on health care.

  The real exchange rate of the u.s. dollar increases

With a constant world interest rate, full employment, and an initial trade surplus of zero, a tax cut in a small open economy.

  Illustrate what would you expect to happen

Illustrate what would you expect to happen to the total expenditures on good X.

  What is the value of real gdp in 2002

If the nominal GDP in 2002 is $8,000 billion and the implicit price deflator is 1.4, what is the value of real GDP in 2002?

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