Increase in household savings ratio on output

Assignment Help Business Economics
Reference no: EM131246712

Assuming a 2-sector economy and the willingness of a central bank to accept any interest rates in LR equilibrium, how do I use aggregate demand and supply to explain the impact of an increase in household savings ratio on output, unemployment and the rate of inflation in the short run and long run?

Reference no: EM131246712

Questions Cloud

Evidence of economies of scale : Does the Hershey business show evidence of economies of scale (decreasing AC) or diseconomies of scale? What is your evidence? (you perhaps have to look at it's total product and output for last couple of years
Contribute to our huge trade deficit : Which one of the following does not contribute to our huge trade deficit?
Money market funds are yielding almost nothing : Money market funds are yielding almost nothing. Last month, the interest rate on a money market fund averaged 0.08% a year and on 5-year CDs it was 2.6% a year. The inflation rate was 0.1% a year. Calculate the real interest rate on each of these fin..
Most accurate statement : Which of the following is the most accurate statement? Americans are very willing to buy domestically produced goods, even if there are more expensive than imported goods. We import more foreign goods than we did 40 years ago, but the merchandise imp..
Increase in household savings ratio on output : Assuming a 2-sector economy and the willingness of a central bank to accept any interest rates in LR equilibrium, how do I use aggregate demand and supply to explain the impact of an increase in household savings ratio on output, unemployment and the..
Accurate statement with respect to our chemical industry : Which would be the most accurate statement with respect to our chemical industry?
Solve for the monopsonists demand for labor : Consider the case of a monopsonist who is the only... Consider the case of a monopsonist who is the only employer in an isolated town in West Virginia. There are 100 individuals who live in the town, and each has a utility function given by u(l,c) = ..
Find the basis for the null space : Prove that the space is a subspace or demonstrate which of the requirements for a subspace - Find the basis for the null space and Write the complete solution to the system.
Explains the components between material and labor cost : write an essay that explains the components between Material and Labor cost for control purposes.  Include a discussion about the importance of recording material costs using Earned Value Measurement

Reviews

Write a Review

Business Economics Questions & Answers

  Higher level of output per worker in the steady state

Suppose that two countries are exactly alike in every respect except that population grows at a faster rate in country A than in country B. Which country will have the higher level of output per worker in the steady state? Illustrate graphically. Whi..

  Illustrate what was the real interest rate you paid

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.

  Assume the demand curve is downward sloping

Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.

  Definitions of the money supply

Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?

  Influenced the slope of the phillips curve

The slope of the Phillips curve: Draw a graph with a steep Phillips curve and a graph with a gently sloped Phillips curve. Explain how the two economies respond differently to a boom and to a slump. What are some factors that might influenced the slo..

  Show why the firm should not be charged a per-unit tax

Show why the firm should not be charged a per-unit tax on the firms output to compensate for the pollution it discharged into a major river. Devise a game plan for responding to the questions that will be raised in the joint session of the subcomm..

  Part of the rehabilitation of the downtown area

As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department is planning to develop the space below several overpasses into basketball, handball, miniature golf, and tennis courts. The initial cost i..

  Calculate the optimal money growth rate needed for the fed

Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.

  In what way is fiscal easing in japan relevant here

At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only ..

  Briefly explain which component of aggregate expenditure

Briefly explain which component of aggregate expenditure will be affected by each of the following transactions. also , indicate whether it will increase or decrease. Suppose the United States experiences a long period of relatively stable prices whi..

  The marginal cost of mining diamonds is constant

A large percentage of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000. What would happen to South Africa’s profit if it increased its production by 1,000 while R..

  Net purchases of company t for that year

The rate of stockturn for Company T in the year 2006 was 12.5. At the start of that year the company held stock to the value of $327,950, and at the end of that year the value of stock held was $300,450.

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