### Aggregate expenditures and aggregate demand and supply

##### Reference no: EM13739720

Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short run effects each of the following scenarios has on the relevant economy. Be sure to identify the cause of any shift or movement along AE, AD, and/or SRAS. [Hint: Your diagrams for each part should look something like those in Figure 23-8, or 23-10 in your text.] (a) Due to the decrease in world oil prices, Canadian oil and gas companies reduce investment spending. [4] (b) Depreciation of the Euro leads to an increase in exports for the Euro-zone and a reduction in the marginal propensity to import in the Euro-zone. [5] (c) Canadian productivity rapidly increases, while at the same time Canadian exports increase due to a growing US economy. [5]

### Write a Review

#### The methodology of combining forecasts

The methodology of combining forecasts is best described as

#### How firm a be made better off by shifting its output

If firm A produces 100 record albums and 100 video cassettes, how might firm A be made better off by shifting its output mix. Explain your reasonings clearly.

#### The annual income from a rented home

The annual income from a rented home is \$24,000. The annual expenses are \$6000. If the house can be sold for \$245,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 9% to be a suitable rate?

#### Elucidate what happen to the prices of oranges and marginal

Elucidate what happen to the prices of oranges and marginal product of orange pickers as a result of a freeze. Can you say what happens to the demand for oranges pickers. Why or why not.

#### What will happen to the equilibrium price and quantity

"Suppose the market for oranges is disturbed by below-freezing cold weather that destroys much of the orange crop in the California. Predict what will happen to the equilibrium price and quantity in the market for oranges because of this natural d..

#### Explain the unique characteristic of the four primary market

Respond to each of the following questions in 150-200 words each covering the economic topics and concepts described in chapter 9 and 10 of the text, Essentials of Health Economics.

#### An expression describing total income from tickets plus

Write down an expression describing total income from tickets plus popcorn plus other concessions. Forecast total incomes for regular also special Tuesday-night pricing.

#### Calculate expected payout and talk about risk behavoir

Suppose 20 balls are placed in a bag. 10 balls are red, 9 balls are yellow and 1 ball is green. If you draw a red ball you must pay \$10. If you draw a yellow ball you get \$2. If you draw the green ball you get \$100.

#### Why would a country such as the united states which can

Why would a country such as the United States, which can presumably produce everything it needs itself, choose to trade with other nations?

#### What is the probability that the doctor will spend

determined that the consultation time was normally distributed with a mean of 15 minutes and a standard deviation of 2 minutes. What is the probability that the doctor will spend more than 11 minutes?