### Difference - ad-as model and the dynamic ad-as model

Assignment Help Business Economics
##### Reference no: EM13154198

Which of the following is a major difference between the AD-AS model and the dynamic AD-AS model? The dynamic .AD-AS model assumes the economy does not experience long-run growth, while the AD-AS model assumes there is constant inflation in the economy. AD only includes consumption, investment and government purchases, while the .AD-AS model assumes .AD includes consumption investment government purchases and net exports. the SRAS is stable and will not shift while the AD-AS model assumes the SRAS can only change with an exogenous event such as oil price changes. potential GDP increases continually, while the AD-AS model assumes the LRAS does not change.

#### Demand on the price and quantity exchanged in the market

Draw supply and demand curves. Show the impact of an increase in demand on the price and quantity exchanged in the market. Show the impact of a decrease in demand on the price

#### How may you apply what you learned about supply and demand

How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?

#### Effective in substantially reducing inflation

The central bank of the country Oakville is hosting its annual economic policy symposium with monetary policy as the theme. Several bankers and professional economists are in

#### The price elasticity of demand for lift tickets

As the manager of a ski resort, you want to increase the quantity of lift tickets sold by 10%. Your staff economist has determined that the price elasticity of demand for lift

#### Suppose the price level and value

Suppose the price level and value of the U.S. dollar in year one are 1 and \$1, respectively. If the price level rises to 1.20 in year two, what is the new value of the dollar?

#### Firms produce identical product at zero marginal cost

Suppose two firms produce an identical product at zero marginal cost and face the demand curve P = 50 – Q a. If the firms behave as Cournot duopolists, what quantity do they p

#### Trends in real wages-trends in employment and unemployment

List and discuss the five important labor market trends How do these trends either support or qualify the proposition that increasing labor productivity leads to higher standa

#### Sketch the graph of the firms isoquant

For this problem, you will sketch the graph of the firm’s isoquant for Q = 10 units of output, and on the same graph sketch the firm’s isocost line associated with the total c

### Write a Review

#### 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!