+1-415-670-9189
info@expertsmind.com
Long-run and short-run aggregate supply curve
Course:- Business Economics
Reference No.:- EM13891926




Assignment Help
Assignment Help >> Business Economics

1. The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward full employment?

2. When the price level increases, the quantity of goods and services purchased declines. Why does this happen?

3. Explain the difference between the long-run aggregate supply curve and the short-run aggregate supply curve.

4. What were the major areas of disagreement between John Maynard Keynes and the classical economists?

5. Describe the chain reaction that is set off when (a) aggregate demand exceeds aggregate supply; (b) aggregate supply exceeds aggregate demand.

6. If you lived in a village cut off from the rest of the world, show how Say's law would apply to your village's economy.

7. Describe the differences between an inflationary gap and a recessionary gap.

8. Explain why large deficits are so bad.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Smith likes cashews better than almonds and likes almond better than walnuts. He likes pecans equally as macadamia nuts and prefers macadamia nuts to almonds. Assuming his pre
Firms have excess capacity in the long run under: The firm that uses a price taker is: In the long run, which type of firm may follow "price leadership"? Under perfect competi
A street vendor reduces the price of gelato from $3.50 to $2.75, the number of gelatos sold per day rises from 600 to 750. What is the price elasticity of demand for gelato?
House of Cards (a) Frank Underwood and Raymond Tusk need to negotiate the terms of a potential alliance. You are told the following: (i) Both of them need to decide whether or
Consider firms in industries you are familiar with. Are firms in such industries price takers or price-setters? How much control do they have over the prices they charge? (1
Background info for question below: "For all problems consider a market containing four identical firms, each of which makes an identical product. The inverse demand for this
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year. The variable costs are: 50Q – Q2 (Q is in hundreds) The firm pays $500 a year