Reference no: EM131287361
Answer all of the following questions in Microsoft Word file with complete questions and answers and attach it. Correct answer this question is worth up to 40 points.
1. Determine whether each of the following situations (a, b and c) would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve (Long run and Short run), neither, or both.
• Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case? Is there an expansionary, contractionary, or no gap between the potential output and the actual output? And, is the unemployment rate lower or higher than the natural rate of unemployment.
• You can show all the above information by means of a graph that has Long Run Aggregate Supply, Short Run Aggregate Supply and Aggregate Demand.
• You do not need to explain in words if you chose to graph this information. Graphs can be hand drawn and then scanned a pdf document for attachment.
a. Consumer confidence declines.
b. The supply of resources increases i.) temporary increase, ii.) permanent increase
c. The wage rate increases
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Calculate his investment rate of return and his capital gain
: A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25.
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Calculate his investment rate of return and his capital gain
: A man invested in 500 shares of a local business stock selling for $15.75 a share. A while later he sold half of his shares at $17.25. Calculate his investment rate of return and his capital gain.
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Principles of economic
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What happens to aggregate output and the price level
: Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case? Is there an expansionary, contractionary, or no gap between the potential output and the actual output?
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Identify three categories of products
: What is a trade area? What has happened to the trade area for small and medium-sized retailers since the emergence of widespread usage of the Internet as a channel for serving current and potential customers?
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