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

  Clarify about the problem as suggested by the media

The question related to Economics and mainly Macroeconomics. It is clarify about the problem as suggested by the media about the current account deficit in the US.

  Use the line drawing tool to draw a line

Use the line drawing tool to draw a line showing the relationship between the number of deliveries (on the horizontal axis) and your total cost (on the vertical axis). Draw the lnie between zero and 20 delieries. Label this line 'Cost'.

  Description of price and income elasticity

Using the midpoint formula, calculate the price elasticity of demand for the following problem: Calculate the income elasticity of demand using the general formula for elasticity:

  What would happens to hi-techs profits

What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.

  Construct a model of irrational behavior

Economists are often criticized for making assumptions. Explain why are assumptions necessary? To think about this, you might consider an assumption that is often made,

  Determine marginal propensity

A open economy has a marginal propensity to import equal to .2 and a marginal propensity to consume equal to .7. Determine propensity to save of this economy?

  A beekeeper yung lives next to an apple orchard she is not

a beekeeper yung lives next to an apple orchard. she is not only benefits from the bees honey which she sells but she

  What was the main component of ni

1. What is the difference between gross domestic product (GDP) and gross national product (GNP)? 2. Based on the table, what calculations must you make to determine GNP from GDP? 3. What is national income (NI)? 4. Which was higher in this year, GNP ..

  Effect of monetary policy on usd

Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.

  Causes the present account balance to increase in the short

Monetary expansion causes the present account balance to increase in the short run. Describe this statement. Is the same true for fiscal expansion.

  How would this technological change affect the price elastic

Assume that, over time, engineers develop new residential furnaces that can run on different tpes of fuels, e.g., natural gas, electricity, propane, and fuel oil, simply by flipping a switch on the furnace.

  What rate of nominal wage growth will workers seek

Draw an AS-AD diagram to illustrate the effects of rising inflation expectations on an economy threatened by inflationary growth in aggregate demand. Explain your diagram clearly.

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